Record infrastructure investment of more than $3.3 billion through the Saskatchewan Builds Capital Plan and the province’s Crown corporations will help keep Saskatchewan strong.
Capital projects ranging from investments in power transmission and telecommunications networks, to highways, schools and hospitals are part of the largest single-year capital commitment in the province’s history.
Saskatchewan continues to grow and that means a growing demand for infrastructure,” Finance Minister Ken Krawetz said. “This budget begins a $5.8 billion, four-year commitment through the Saskatchewan Builds Capital Plan to build schools, health care facilities, highways, municipal infrastructure and roads and bridges.”
In 2015-16, the Saskatchewan Builds Capital Plan commits $1.3 billion to core capital projects, an increase of almost 50 per cent over last year’s capital budget.
In addition, Saskatchewan’s Crown corporations, including SaskPower, SaskTel and SaskEnergy are projected to spend $2.0 billion on capital projects in 2015-16, matching the previous year’s budget for Crown infrastructure.
Krawetz announced that to help finance the 2015-16 Saskatchewan Builds Capital Plan the government will borrow an estimated $700 million.
“Our high credit ratings, positive outlook, and resilient economy combined with historically low interest rates provide a strong foundation from which to borrow to build,” Krawetz said. “Saskatchewan’s capital needs continue to grow and delaying needed projects would mean higher construction costs down the line. As well, we believe that continuing major capital construction projects this year will have a positive impact on the economy, creating jobs and sending a strong signal that Saskatchewan is confident and we will weather the downturn in the oil sector.
We chose to continue building Saskatchewan.”
The balance of the 2015-16 Capital Plan will be financed through a combination of public private partnerships (P3s), funding from the federal government through initiatives like the Gas Tax fund and the New Building Canada program, contributions from operations, as well as $106 million from the proceeds of the 2013 sale of Information Services Corporation. A debt repayment plan ensures at least 2.0 per cent of the value of the borrowed amount will be set aside and invested each year to ensure sufficient cash is available to repay the debt as it comes due.
The Capital Plan includes $102 million for major capital projects in support of government programs, including the Parks Capital program, new court and corrections facilities and investments in the province’s forest firefighting capacity. “Investments in infrastructure will keep Saskatchewan strong,” Krawetz said. “The commitments we are making this year and over the next few years are substantial and important for our continued growth.”
