THE FIVE-YEAR PLAN TO BUILD A STRONGER MANITOBA MANITOBA S CORE INFRASTRUCTURE PRIORITIES

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1 THE FIVE-YEAR PLAN TO BUILD A STRONGER MANITOBA MANITOBA S CORE INFRASTRUCTURE PRIORITIES

2 THE FIVE-YEAR PLAN TO BUILD A STRONGER MANITOBA MANITOBA S CORE INFRASTRUCTURE PRIORITIES 1 Introduction 3 Reaching out 4 By the numbers 5 Roads, highways & bridges 8 Flood protection 10 Municipal infrastructure 12 Funding core infrastructure

3 Introduction Economic uncertainty has stretched many countries to the limit, putting jobs and economies at risk. Yet, despite so much uncertainty around the world, Manitoba has remained strong, growing steadily. Today, Manitoba s unemployment rate is among the lowest in Canada. We are building and improving in every corner of our province. Together we are creating opportunities for our kids, right here at home. Some have said our province has been lucky, but Manitobans know better. Our successes come from the hard work of the people who live here: practical, but willing to act boldly when presented with opportunity. And from having a government that knows we do better when we work together. Together, we have tackled uncertainty head on, protecting those things that matter most to families and ensuring Manitoba businesses can continue innovating and growing. Investments in our roads, bridges, flood protection and other important infrastructure have created thousands of well-paying jobs and helped move made-in-manitoba goods and services more efficiently around our province and across our borders. Over the next five years, the Manitoba government will build on the momentum and sustain this growth with targeted investment in core infrastructure creating new training opportunities and tens of thousands of new jobs. This is not the first time that Manitoba has encountered challenges like the ones we face today. Two decades ago, economic uncertainty meant our core infrastructure was cut or neglected, creating what s known as an infrastructure deficit. That underinvestment meant aging bridges went unrepaired and highway trucking routes and municipal streets were left to crumble. It took years to repair much of the damage and serves as a reminder that ignoring infrastructure harms families and our economy. The last five years A little over five years ago, the world economy took a sharp fall. Many families, around the world, saw their life savings disappear over night. They saw the value of their home their single largest asset plummet. That s why the Manitoba government chose a plan to protect families and the jobs that support them. We made investments in infrastructure at rates never before seen in Manitoba. For example, investments in highways have more than tripled from $174 million in 1999, to $532 million this past year. The federal government also realized the importance of infrastructure in not only protecting jobs but also creating new ones, and growing the country s economy. The Building Canada Plan brought the provincial government, municipalities and Ottawa together to build Manitoba s key infrastructure priorities. Three levels of government working together, renewed some of our most important assets, kept Manitoba businesses working and created thousands of jobs the majority in the private sector. Five years later, Manitoba has remained strong, with an economy that has grown faster than the national average. But economic uncertainty has lingered longer than anyone had expected. The global recovery remains fragile and Manitoba is not immune. 1

4 The next five years Last spring, the federal government announced the creation of a new Building Canada Plan, recognizing the new infrastructure needs of growing communities. The federal government has recognized that investments in infrastructure are also a key ingredient in keeping our economy moving forward. To take advantage of these matching dollars, Manitoba took steps to increase the provincial sales tax by one cent on the dollar, creating the needed revenue. That difficult decision has not been without some controversy. Instead, some have called for a return to across the board cuts to schools, hospitals and services for families in order to raise the needed revenue. We have seen firsthand the impacts of these types of cuts and we have rejected that approach. A one-cent increase in the PST will allow Manitoba, the federal government and municipalities to come together again to build the infrastructure our steadily growing economy and expanding neighbourhoods require. The new $5.5 billion Five-Year Plan to Build a Stronger Manitoba will pave the way toward a brighter future for Manitoba. For our economy, it will mean a $6.3 billion boost and a $5.4 billion increase in our exports. And for Manitoba families, the Five-Year Plan will create good job opportunities more than 58,000 of them. Getting there, together To ensure the right priorities are set, extensive consultations were held across Manitoba with families, municipalities, business and labour groups and industry associations. Their message was clear, new investments in our core infrastructure are needed to keep Manitoba competitive and keep our economy growing. Neglecting our infrastructure, as was done in the past, is not an option. We must build and renew to carry Manitoba through the lingering effects of the most severe recession since the Great Depression. We will work with all levels of government, business and labour groups and industry associations to chart a path forward, together. We will target investments in our core, economy-growing infrastructure: roads and bridges, flood protection and municipal infrastructure. Our Five-Year Plan is responsible and forwardlooking. And it is ambitious. But, as Manitobans, we don t expect anything to be handed to us. We never have. We know that the harder the challenge, the sweeter the success. Our momentum is growing and all Manitobans can play an important part in that progress. 2

5 Reaching out Over the last decade, Manitoba has invested more and more each year in repairing and building infrastructure. Across the province, you can see a changing landscape and thousands of families and businesses have benefited from these construction projects. Together we have made a lot of progress, yet more needs to be done to keep Manitoba strong and to stimulate our economy. Last year, the provincial government reached out to Manitobans to hear their ideas on how best to target new revenue from the PST and prioritize infrastructure. The advice from municipalities, business and labour leaders, and industry associations form the foundation of the Five-Year Plan to Build a Stronger Manitoba. The federal government has recognized this reality with the new Building Canada Plan, an important step forward. A time-limited increase in the PST means Manitoba can take full advantage of the matching dollars that are available through this federal fund. What we heard: New construction should benefit families and businesses, giving Manitobans the best value for their hard-earned tax dollars with good jobs and business opportunities. Core infrastructure investments will benefit the economy most: expanding trade, attracting new investment and strengthening Manitoba s competitive footing. New PST revenues should be dedicated to core infrastructure projects roads, bridges, flood protection and municipal infrastructure over and above existing investment levels. Unused funds should be carried forward to future years to ensure that all planned projects proceed and infrastructure funds do not lapse. Clear and transparent reporting on how PST revenues are invested is needed to provide accountability and ensure that new revenues are invested in core infrastructure. Manitoba cannot afford delays. Delays will harm Manitoba s competitive position and compromise quality of life. Innovative approaches and better planning are needed between government and industry to mobilize resources, increase labour productivity, improve supply logistics and reduce costs. 3

6 5 YEAR PLAN By the numbers The Conference Board of Canada has projected the benefits of Manitoba s new Five-Year Plan and the results may surprise you. It s not just about municipal infrastructure, flood protection, roads and bridges. BUILDING INFRASTRUCTURE pays off $ 1 $ 1.16 EACH DOLLAR INVESTED BENEFIT TO ECONOMY These investments will create more than 58,900 jobs for families. These investments will stimulate Manitoba s economy. BOOST TO ECONOMY: $6.3 BILLION BOOST TO EXPORTS: $5.4 BILLION BOOST TO $1.4 RETAIL SALES: BILLION NEW HOUSING STARTS: 2, NEW EQUIPMENT & MACHINERY ASSETS FOR FIRMS $1.4 BILLION Find the full Conference Board of Canada analysis at SteadyGrowth.ca 4

7 $3.7 BILLION Roads, highways & bridges Families and businesses count on Manitoba s 19,000 kilometres of provincial highways and roads, and over 3,300 bridges and crossings to get around and to get their products and services to their customers. Decades of underinvestment, however, have taken a toll on Manitoba s aging infrastructure. Greater investment in recent years has helped, but more must be done to meet the needs of our growing population and expanding businesses. More than $3.7 billion will be invested in our roads, highways and bridges over the next five years to better connect communities and strengthen our major trade corridors. HIGHLIGHTS: Trade corridors to U.S. With Winnipeg at the heart of the continent, Manitoba is a key hub in North America s trucking operations. CentrePort Canada is an important asset that, with the right future investments, will solidify Manitoba s role in moving goods across North America, for decades to come. Southwest Perimeter: CentrePort is connected to Highway 75 by the southwest Perimeter Highway. The Five-Year Plan will invest $200 million in improvements, including new interchanges to help move Manitoba products seamlessly from CentrePort to Highway 75 and south to the U.S. Highway 10: Highway 10 is Manitoba s longest highway and another important trade route connecting from as far north as Flin Flon and south to the US. The Five-Year Plan will invest $265 million in Highway 10, including new passing lanes, pavement and curve realignments. The Manitoba government will invest $680 million in these important trade routes to better connect wholesalers, manufacturers, contractors and producers to their customers. These investments will create an estimated 7,750 jobs for Manitobans. Highway 75: In Western Canada, Highway 75 is the busiest corridor for Canadian products heading to U.S. markets. The Five- Year Plan will invest $215 million to build Highway 75 to interstate flood standards, including higher bridges over the Morris River and rebuilding 53 kilometres of northbound lanes. For families and businesses, these investments will mean better access to important roads during periods of flooding. PTH 8 resurfacing 5

8 Trade corridors to neighbouring provinces Each day, many Manitoba businesses export their products east and west to our provincial neighbours. To ensure these goods can continue to move efficiently, more must be done to ease urban bottlenecks and improve driving conditions. Trans-Canada: The Trans-Canada Highway is Western Canada s primary trade corridor to Ontario. The Five-Year Plan will invest $320 million in the Trans-Canada, east and west of Winnipeg, including fully paved shoulders, resurfacing, intersection improvements, rumble strips and new bridges. Headingley: Truck traffic leaving CentrePort Canada for Western Canada can expect a significant bottleneck at Headingley. The Five-Year Plan will build a by-pass to connect CentrePort Canada to Highway 1 to move goods more efficiently, improve safety and reduce congestion. Yellowhead Highway: The Yellowhead Highway (Highway 16) is an important link to Saskatchewan. The Five-Year Plan will invest $100 million to improve driving conditions, including passing lanes, on over 100 kilometres of road. The Manitoba government will invest more than $500 million to improve these important interprovincial trade corridors. These investments will create an estimated 5,700 jobs for Manitobans. Highway 6 and Northern Roads With an area nearly four times the size of North Dakota, Manitoba is a large province with diverse communities spread throughout. It is often said that Manitoba s future prosperity lies in the vast resources of our north. The Manitoba government will invest $188 million to upgrade Highway 6, the primary route between Winnipeg, the Interlake and Manitoba s North. These investments will pave Highway 6 to wider, national highway standards, replace a number of bridges, improve intersections and add passing lanes. The Manitoba government will also invest over $37 million in Provincial Roads 373 and 374, which serve Norway House and Cross Lake. These combined investments will create an estimated 2,500 jobs for Manitobans. Highway 75 gravel pit 6

9 East Side Road network More than 34,000 Manitobans live in remote communities on the east side of Lake Winnipeg. The Manitoba government has worked in close partnership with these communities to better connect them with the rest of Manitoba, For example, this year the new road to Bloodvein First Nation will open. These investments improve the quality of life and create training opportunities and jobs for families on the east side of Lake Winnipeg. For the rest of Manitoba, these improvements mean better access to the rich wildlife and tourism this part of our province offers. The Manitoba government will work to develop new routes and transition more winter roads to better connect more communities on the east side of Lake Winnipeg. Bridges Manitoba has over 3,300 bridges and crossings. Over 1,000 of these were built in the 1950s and 1960s. Past investments have not kept pace with Manitoba s replacement needs. From 1995 to 1999 for example, only $50 million was invested in Manitoba bridges. Over the last five years, Manitoba has made steady progress, investing $437 million in repairing and replacing bridges, but more needs to be done. The Manitoba government will invest over $700 million in our province s bridges including, a new interchange on the south Perimeter at PTH 13 (McGillivray Blvd), expanding Brandon s Daly Overpass to four lanes, and building new bridges over the Morris River. A commitment to industry 1 We 2 We 3 We 4 We 5 We will provide a detailed, multi-year project plan this spring and update every year for industry planning purposes. will release a tender schedule early, each fall, that identifies all projects planned for the following construction season. will bundle projects, where appropriate, to reduce the number of tenders and create efficiencies in project planning and administration. will continue to explore innovative tender and project delivery techniques to get the best return on each dollar invested. will meet regularly with industry to improve cooperation and help industry grow their workforce with expanded apprenticeship and training opportunities. Highway 75 survey crew 7

10 $320 MILLION Flood protection Manitoba s many lakes, rivers and waterways are part of what makes our province a great place to live. Yet each year, we face the threats of flooding. For families, businesses and producers, the effects can be devastating. Investments in flood protection are paying-off. The floodway has already saved more than $30 billion in damages. A total of $320 million will be invested in flood protection around the province over the next five years to better protect communities from flooding. HIGHLIGHTS: Lake Manitoba and Lake St. Martin Outlets Floodwaters can devastate families, businesses and producers. Manitoba is renowned for our flood readiness, though record flooding in 2011 pushed Manitoba to the limit. An emergency channel was built to ease the pressure along Lake Manitoba and Lake St. Martin, but it is clear that a longterm solution is needed to protect Manitobans in those regions. Portage Diversion The Portage Diversion first came online in 1970 to better protect communities and homes along the lower Assiniboine River and the City of Winnipeg. It is an important part of Manitoba s flood fighting efforts, and played an important role in The Manitoba government will invest to rehabilitate the 29-kilometre diversion channel and upgrade the control structures to improve this key asset. Shellmouth Dam The Shellmouth Dam, located near Russell, stores run-off water from the Assiniboine River and provides important flood protection for communities downstream, including Brandon and Winnipeg. Working with the federal government, Manitoba has done extensive work on the dam and its control structures in recent years. The Manitoba government will build on these improvements, including modernizing mechanical and electrical works, and rehabilitating the gate control structure. The Manitoba government will work to make the channel a permanent water control structure and build a new Lake Manitoba outlet. These large-scale projects require extensive consultation, engineering and environmental assessment work but will expand our ability to manage water. 8

11 Brandon Dikes Manitoba s second-largest city, Brandon, was hit hard by the 2011 flood. Emergency dikes were quickly constructed to protect the community from flooding and maintain access in and out of the city. Since then, the Manitoba government has worked with the city to complete a new dike to protect 18th street. The Manitoba government will work with the City of Brandon to provide permanent protection for families and businesses, up to a 1-in-300 year flood level. This will include raising and widening the existing dikes between 18th and 1st Street, improving drainage around the dikes and flood proofing the pump stations to keep wastewater and drainage systems functioning. Community Dikes Dry and safe towns and cities can more easily attract new residents and business to their community. Community ring dikes along the Red River Valley and other communities have been an important ongoing part of Manitoba s approach to fighting floods, including the completion of flood protection work in St. Laurent and Wawanesa. The Manitoba government will work with several Manitoba communities to better protect against flooding. New dikes in Brandon and other communities will become important assets to local municipalities. The costs associated with this work are reflected in the Five-Year Plan s investments in Manitoba municipalities, over and above the $320 million dedicated to flood protection. Red River Floodway expansion 9

12 $1.5 BILLION Municipal infrastructure With each day, Manitoba is attracting more and more newcomers who are settling in Winnipeg, Brandon, Steinbach and communities across our province. They are building a good life for their families and they are helping strengthen our economy and our communities. Growing communities depend on strong, local infrastructure like good roads, clean water and community facilities. Over the last decade, Manitoba has invested more and more in municipal infrastructure but declining investments in the 1990s and aging infrastructure have held us back. More than $1.5 billion will be invested in municipal roads, clean water, active transportation and other municipal infrastructure over the next five years to meet the needs of families and businesses in our growing communities. HIGHLIGHTS: Winnipeg roads Today, more than half of all Manitobans call Winnipeg home, and in the next twenty years, Winnipeg s population is expected to reach one million. Perhaps it s no wonder, with affordable home prices, big city amenities and attractions, and a high quality of life. With that growth, however, comes traffic congestion and greater wear on our roads. Over the last decade, the Manitoba government has invested heavily in Winnipeg s nearly 7,000 kilometres of roads, but it is clear that more needs to be done. The Manitoba government has proudly partnered with the City of Winnipeg on projects like rebuilding the Disraeli Bridge, building the new Kenaston Underpass and extending the Chief Peguis Trail because they mean families can get around the city more quickly and so can locally made products and services. The Manitoba government will invest $250 million to renew and upgrade Winnipeg roads. We will also work with the City of Winnipeg and the federal government to prioritize projects like further extending the Chief Peguis Trail from Main Street to McPhillips Street. Together, we will take another step forward in meeting our largest city s infrastructure needs and create good job opportunities for electricians, carpenters, heavy equipment operators and many more Manitobans. Municipal roads and bridges across Manitoba Cities, towns and municipalities of all sizes need good roads to attract families and businesses to keep their neighbourhoods and communities strong. Manitoba cities and towns are growing and need modern infrastructure and new investments. The City of Steinbach, one of Manitoba s fastest growing communities, saw its population grow by more than 20 per cent from 2006 to To support a high quality of life for families and attract new businesses, the Manitoba government has worked closely with municipalities like Steinbach to improve their local infrastructure. The Manitoba government will invest over $76 million in municipal roads and bridges to strengthen local assets and ensure the province s many communities can continue to grow. These investments will also create good opportunities for families and businesses in those communities. 10

13 Water and wastewater treatment facilities Clean water is a basic necessity. With growing populations and expanding businesses, many of Manitoba s municipalities must modernize and expand their wastewater treatment facilities to keep up. The City of Portage la Prairie is one example. Local producers and three large food processing facilities are providing families in the area with steady jobs. These important employers, and a growing population have put Portage la Prairie s aging wastewater treatment facilities to the test. Neglecting these realities would put the health of Lake Winnipeg and other waterways at risk. The Manitoba government will work with municipalities and the federal government to prioritize upgrading or replacing wastewater treatment facilities in communities like Portage la Prairie, Selkirk, Virden and Thompson. Together, we will also build a new water treatment plant to provide running water to CentrePort Canada, Headingley and neighbouring communities. Winnipeg rapid transit A strong public transportation system is the hallmark of any thriving city. For many families in Winnipeg, public transit is how they get to work, how they shop for groceries and how they make the most of all that Winnipeg has to offer. The Manitoba government and the City of Winnipeg will again partner to build the second phase of Winnipeg s rapid transit system. The extension of rapid transit and the widening of the Jubilee underpass will better connect the southwest regions of the city and the University of Manitoba with the downtown. This will also ease traffic congestion for drivers and reduce greenhouse gas emissions. The Manitoba government will dedicate up to $225 million toward this next phase of rapid transit. Building Canada Plan Governments at all levels agree that more must be done to meet the infrastructure needs of our municipalities. Increases in construction and material costs, and the sheer volume of projects have made collaboration between governments essential. The federal government s Building Canada Plan introduced in 2007 brought Ottawa, the Manitoba government and municipalities together to identify shared infrastructure priorities that have improved the quality of life for families, created good jobs for Manitobans and grew our economy. These collaborations have built important projects like new roads in Waverley West, the CentrePort Canada expressway, a new wastewater treatment plant in Brandon and the Thompson Regional Community Centre. Moving forward, municipalities, the federal government and the Manitoba government will come together again to identify common priorities for the new Building Canada Plan to improve infrastructure in municipalities across the province. 11

14 Funding core infrastructure The Manitoba government has committed that every dollar raised from the new point of PST will be matched by new investments in core infrastructure, over and above the existing baseline investment level. The Conference Board of Canada has confirmed that Manitoba s $5.5 billion planned investment will in fact exceed its PST commitment by over $400 million: $5.5 billion: Total planned investment ( ) $3.6 billion: Baseline investment ($729 million/year) ( ) $1.5 billion: Projected revenue from new point of PST = $420 million in investment over PST commitment The $420 million in planned investment, over and above the PST commitment, accommodates a projected federal contribution of up to $234 million over five years (half of the $467 million earmarked for Manitoba over ten years), and provides flexibility to carry forward any underinvestment in a given year, including 2013/14 which falls outside of the Five-Year Plan Progress on the Five-Year Plan, as well as its economic impacts, will be independently reviewed and publicly reported annually. 2013/14 Forecast 2014/15 Budget 2015/16 Planned Five-Year Plan 2016/17 Planned (millions of dollars) 2017/18 Planned 2018/19 Planned Roads, Highways & Bridges ,741 Flood Protection Municipal Infrastructure ,506 Total Planned Investment 854 1,026 1,083 1,108 1,145 1,205 5,567 Baseline Investment (2012/13) ,645 One Point PST Commitment ,502 Core Infrastructure Commitment 925 1,005 1,017 1,029 1,042 1,054 5,147 Investment Over/(Under) Commitment (71) Year Total NOTES: Municipal Infrastructure is the Building Manitoba Fund net of transit operating support. $71 million in projected underinvestment in 13/14 will be more than offset by the $420 million investment over and above the PST commitment in the Five-Year Plan. 12

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