Thank you, Mr. Chairman. Mr. Chairman, I am pleased to present the 2010-2011 Capital Estimates of the Government of the Northwest Territories.
The estimates outline appropriations for infrastructure investments of $221.856 million in the 2010-2011 fiscal year. This amount includes $40.140 million in infrastructure contributions to community governments.
In early 2008 the Ministerial Subcommittee for Infrastructure completed its review of our capital
planning process and presented its findings in April 2008. The subcommittee subsequently made recommendations to the Financial Management Board for improving how we plan for, acquire and deliver required infrastructure.
An important recommendation from the subcommittee was that our government take a more corporate approach to planning and delivering its infrastructure. The proposed plan before us today is consistent with this new approach.
Our revised approach, including the approval of the capital budget in the fall, allows for better planning for both the GNWT and contractors. This is because the tendering process can begin sooner, contractors can fit projects into their schedule, encouraging more bidders and, therefore, generating the greatest level of interest and competition possible before contractors have already filled their order books for next summer’s construction season. Based on the results of implementing the 2009-2010 Capital Plan, our revised approach is working.
I would like to remind Members of the magnitude of our revised 2009-2010 Capital Estimates of $426 million.
These revised estimates represent the largest planned investment in community government infrastructure in the history of the GNWT, at a time when our economy has experienced a slowdown due to the global economic recession and pullback in our Territory’s mining and oil and gas sector. Combined with proposed estimates of $222 million in 2010-2011, our government will inject a total of $648 million into the NWT economy over two years, creating significant contract and employment opportunities and address infrastructure needs across the NWT -- for schools, health facilities, highways, airports and other transportation infrastructure. We will continue to provide a stable source of funding for community governments so that they can properly plan to address their infrastructure needs over the long term.
As Members are aware, the GNWT, like all other jurisdictions, is faced with a significant deferred maintenance deficit. Based upon our recent assessments, this deficit is estimated to be approximately $470 million. Consistent with the objectives of our new capital planning process, the projects identified in the 2009-2010 and the 2010-2011 capital plans will address approximately $119 million of this deferred maintenance once those projects are completed. It will be necessary to keep our focus on this issue to ensure we have the proper facilities from which to deliver required programs and services for our residents.
Major highlights in the 2010-2011 estimates include:
•
$63.9 million for highways and winter roads across the NWT;
•
$43.5 million school replacements and
renovations;
•
$40.1 million to contribute to community
infrastructure, which includes $28 million to continue to base fund community governments for infrastructure investments;
•
$17.5 million for airport replacements and
improvements;
•
$2.5 million for information technology projects to improve how the government manages and secures health records.
I am prepared to review the details of the 2010-2011 Capital Estimates documents. Thank you.