Thank you, Mr. Chairman. I am pleased to present the Capital Estimates 2009–2010 of the Government of the Northwest Territories. These estimates outline
appropriations for infrastructure investments of $247.616 million in the 2009–2010 fiscal year.
In early 2008 a review was undertaken on the GNWT’s capital planning process. The review identified many challenges faced by the government in planning and delivering capital projects such as the limited resources and capacity to address existing needs, projects costing more than originally estimated; the heated western Canadian economy, which is impacting the cost of construction and attracting needed skilled trades and technical people; and limited competition on large building projects. These challenges have been highlighted through the significant carryovers that the GNWT has had to bring forward for approval by the Legislative Assembly over the last couple of years.
Mr. Chairman, the fact is that the GNWT is no longer the major player in the Northwest Territories’ construction market. Interest in large capital projects has shifted to the mining sector, which has reduced our influence in the construction market, and inflation has eaten away at our buying power.
The findings from the review were presented to standing committee in April, and recommendations were subsequently made to the Financial Management Board for improving how we plan for, acquire and deliver required capital infrastructure. This included looking at the timing of when capital estimates are approved, ensuring a more disciplined and strategic approach to capital planning, improving coordination of planning and delivery, and looking at innovative approaches for the acquiring and delivery of capital projects.
It was clear from these recommendations that the GNWT must take a more corporate approach to planning and delivering its capital infrastructure. The estimates before us today represent the start of this new approach.
One of the important recommendations from the review was to move the approval of the Capital Estimates to the fall session of the Legislative Assembly. This will allow for better planning for both the GNWT and contractors as it means the tendering process can begin sooner; contractors can fit projects into their schedule, encouraging more bidders and therefore obtain the greatest level of interest and competition possible before contractors have already filled out their order books for next summer’s construction season.
Major highlights in these estimates include:
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$74.8 million for school replacements and
renovations
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$59.3 million for highways and winter roads across the NWT
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$28 million to continue to base fund municipal governments for community infrastructure
•
$19.2 million for infrastructure investments for buildings and workspace to help support the delivery of health and social services programming
•
$13.2 million for information technology
projects to replace aged information systems and improve how the government manages and secures health records.
Mr. Chairman, as Minister Bob McLeod stated earlier this session, the GNWT must take the lead and commit to reducing the Northwest Territories’ dependence on fossil fuels to meet our energy requirements. We look forward to hearing your thoughts regarding investments in some of the important energy initiatives that will help us achieve this goal during the business planning and 2009–10 Main Estimates process.
Mr. Chairman, I am now prepared to review the details of the Capital Estimates 2009–2010 document.