Premier Scott Moe announced on Wednesday the province will be investing $7.5 billion over two years in a capital plan focused on stimulating Saskatchewan’s economic recovery from the COVID-19 pandemic.
According to a media release sent out by the province, the $7.5 billion in funding represents a $2 billion increase over the government’s existing capital plan.
“Over the next two years, our government will invest $7.5 billion dollars in schools, hospitals, highways, Crown utility projects, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan,” said Moe.
“This is a $2 billion economic booster-shot over and above the $5.5 billion our government had already planned to invest in capital projects over the next two years and will be an important step in our province’s economic recovery,” he added.
The plan released by the province includes a stimulus package of $2 billion in infrastructure investments to stimulate economic recovery and encourage local job creation.
The province said planned investments include construction and major upgrades of health facilities, K-12 schools, post-secondary institutions, highways, bridges and public utility enhancements.
Of the announced funding, approximately $1.37 billion will go towards large infrastructure projects, including $103 million for health and $110.5 million for education with additional allocations to be announced at a later date.
Additionally, $300 million will go towards highways projects for thin membrane surface upgrades and passing lanes. It includes $46 million dedicated for upgrades to municipal roads and airports.
According to the province, approximately $181 million will go towards renewal projects to reduce deferred maintenance on provincial and third-party assets. This investment includes new allocations of $100 million for health and $25.9 million for education, with the remainder addressing priority projects in other ministries and agencies.
Over the next two years, more than $320 million will be provided for municipal infrastructure through the $150 million Municipal Economic Enhancement Program, the $130 million Investing in Canada Infrastructure Program, and the $46 million targeted funding through the Ministry of Highways for municipal roads and airports. This is without considering Municipal Revenue Sharing and other various municipal transfers highlighted in the 2020-21 estimates.
“Municipalities are the engines of economic growth in Saskatchewan,” Saskatchewan Urban Municipalities Association President Gordon Barnhart said. “We’ve been advocating for years for the development of a provincial infrastructure program, and we’re extremely pleased to see our provincial government implement one to help our economy recover in these challenging times.”
“The Saskatchewan Association of Rural Municipalities (SARM) is very pleased that the province has made the Infrastructure Stimulus announcement today,” SARM President Ray Orb said. “Investing in municipal infrastructure projects will help rural municipalities in rural Saskatchewan and will certainly help the provincial economy to recover.”
Construction, including maintenance and repair, has been designated an Allowable Business Service by the Government of Saskatchewan. To ensure the safety of workers and communities, work sites will be required to follow all physical distancing measures and restrictions that remain in place through the five phases of the province’s Re-Open Saskatchewan plan.
“Prior to the COVID-19 pandemic the provincial economy was already facing headwinds through depressed resource prices, anti-pipeline policies and rail blockades,” Saskatchewan Heavy Construction Association President Shantel Lipp said. “The announcement today will mean a big boost in the arm not only to the construction industry but to the province as a whole.”
Based on Statistics Canada data, projects funded through the investment announced today are expected to support approximately 10,000 jobs depending on the type, size and duration of each project.
The province said the $7.5 billion stimulus package includes the $2.7 billion crown and executive government capital spending already accounted for in the province’s 2020-21 estimates.
