CAPE ST. GEORGE, NL, Oct. 14 /CNW/ - The Government of Canada announced today that the Town of Cape St. George has been approved for two infrastructure loans as part of Canada's Economic Action Plan.
The announcement was made by the Honourable Ethel Cochrane, Senator for Newfoundland and Labrador, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).
The Town of Cape St. George has been approved for more than $230,000 in low-cost loans from CMHC's Municipal Infrastructure Lending Program (MILP), ) to expand the central water system in St. George and to rebuild the bridge and upgrade the road serving residents in the resettled community of Loretto.
"Our Government understands the importance of infrastructure in maintaining strong and prosperous communities," said Senator Cochrane. "This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It's good news not only for the Towns of Cape St. George and Loretto, but also for Newfoundland and Labrador."
Canada's Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.
"Extending our water system and providing access to Loretto have been our priorities for the last four years," said Mr. Peter Fenwick, Mayor of Cape St. George. "The CMHC low-cost loans will enable us to take on both projects without having to increase taxes. Altogether they save us up to $10,000 a year in interest charges."
Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.
More information on this and other measures in Canada's Economic Action Plan, the federal government's plan to stimulate the economy and protect those hit hardest by the global recession, can be found at: www.actionplan.gc.ca.
To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan.
HELPING MUNICIPALITIES BUILD STRONGER COMMUNITIES
CMHC Municipal Infrastructure Lending Program
Canada's Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities over two years through Canada Mortgage and Housing Corporation (CMHC)'s Municipal Infrastructure Lending Program (MILP) for housing-related infrastructure projects in towns and cities across the country.
These infrastructure loans are available to any municipality within Canada and will provide a new source of funds for municipalities to invest in housing-related infrastructure projects. Only infrastructure projects serving new or existing residential areas may be considered.
Eligible municipal infrastructure projects must directly relate to housing, thereby contributing to the efficient functioning of residential areas. Projects include infrastructure related to the provision of housing services such as water, wastewater and solid waste services; power generation; local transportation infrastructure within or into residential areas such as roads, bridges and tunnels; and residential sidewalks, lighting, pathways, landscaping and green space.
There will be a focus on funding projects that are shovel-ready, as this is a targeted, short-term, temporary measure intended to create jobs.
These low-cost loans will significantly decrease the cost of borrowing for municipalities and can be used by them to fund their contribution for cost-shared federal infrastructure programming.
Eligible loans will be approved largely on a first-come, first-served basis, provided the proposal meets eligibility requirements. However, CMHC will also seek to facilitate equitable access to the program and will work to encourage applications from urban and rural municipalities across Canada.
CMHC will screen applications against program eligibility, readiness to proceed and Canadian Environmental Assessment Agency (CEAA) requirements.
For more information or to make an application, municipalities can visit CMHC's website at www.cmhc.ca/housingactionplan.gc.ca.
SOURCE Canada Mortgage and Housing Corporation
For further information: For further information: Media inquiries: Dawn Ring, Communications and Marketing Consultant, CMHC, (709) 772-5973, Cell: (709) 687-2194; Michelle Bakos, Office of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada, (819) 994-2482; Charles Sauriol, CMHC, National Office, Media Relations, (613) 748-2799