PEI communities to benefit from federal Gas Tax Fund transfer

CHARLOTTETOWN – This month, the Government of Canada delivered the first of two annual $7.8 million federal Gas Tax Fund (GTF) installments to Prince Edward Island. In total, the province will be provided with more than $15.7 million this year through the fund. The funding, which flows through the provincial government to all of its municipalities, is now available to support community infrastructure projects.

Based on previous years, GTF funding supports approximately 45 local infrastructure projects across Prince Edward Island each year.

Some examples of the projects being funded this year include the design and construction of a new community recreation complex in the Community of Morell. The Town of Stratford has plans to develop a boat launch from Mason Road and Greenmount–Montrose will use funding for the expansion of the current Montrose Community Centre. The range of planned projects helps demonstrate the flexibility that the GTF provides.

The two GTF installments for this year are in addition to funds being made available to Prince Edward Island under the Investing in Canada plan.

“Through the federal Gas Tax Fund, communities across Prince Edward Island and the rest of Canada can direct federal funding to the infrastructure projects that address the most pressing needs of local residents and businesses, from improving drinking water to building new recreational facilities. The Government of Canada is proud to deliver this predictable, long-term funding to help ensure access to good middle class jobs, increased mobility, greater economic opportunities, sustainable communities and a high quality of life for all Canadians,” said Amarjeet Sohi, Minister of Infrastructure and Communities.

Quick facts

• Since the program was first introduced in 2005, over $159 million has been provided to communities in Prince Edward Island through the federal Gas Tax Fund.
• The federal Gas Tax Fund makes over $2 billion available each year, and through it provides each community across Canada with a permanent, predictable and indexed source of long-term funding. The funding is made available in two installments each year, in July and November.
• The federal Gas Tax Fund offers significant flexibility. Local communities can make strategic investments across 18 different project categories, including roads and bridges, public transit, drinking water and wastewater infrastructure, and recreational facilities. Communities can use the funds immediately for priority projects, bank the funds for later use, pool the dollars with other communities for shared infrastructure projects or use it to finance major infrastructure expenditures.
• The Government of Canada will invest more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada’s rural and northern communities.

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The following table indicates this year’s federal Gas Tax Fund allocation breakdown for Prince Edward Island:

More information on the federal Gas Tax Fund: http://www.infrastructure.gc.ca/plan/gtf-fte-eng.html

More information on the federal Gas Tax Fund in Prince Edward Island:  http://www.gov.pe.ca/tir/index.php3?number=1051928&lang=E

SOURCE Infrastructure Canada