Feds, Nunavut gov't announce $566M for territory's infrastructure projects

The federal and Nunavut governments announced Wednesday a $566 million federal investment over the next 10 years for infrastructure projects in the territory. 

Nunavut's Minister of Community and Government Services Lorne Kusugak joined Amarjeet Sohi, the federal minister of infrastructure, in Ottawa to announce the signing of the agreement.

The money will help bring cleaner air and water, improve transportation and broadband services for people in remote communities and build more green cultural and recreational infrastructure, they said during the announcement.

The goal is to increase Nunavut's economic growth, make it more accessible for its residents, and to improve and manage infrastructure in a sustainable way.

The bilateral agreement means paying for the projects will be cost-shared — the Government of Canada will provide up to 75 per cent of the cost while the rest will come from the territorial government, community governments and other Indigenous partners. 

But to access the funds, the Nunavut government must first contribute more than $188 million, according to a government news release Wednesday. That brings the total infrastructure funding to about $754 million.

Included in the $566 million is the $175 million under the Arctic Energy Fund that will be used to make the territory more energy-secure.

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Here's the breakdown of how the money will be spent (rounded): 

• $207 million for greener infrastructure (i.e. increased access to clean energy, water);
• $26 million for culture and recreation infrastructure;
• $327.6 million to improve quality of life in remote communities (i.e. improve food security, reliable road/air access, broadband connectivity);
• $6 million in additional territorial allocation based on population.

'Do we want more? Definitely': minister

Minister Kusugak told CBC that the $566 million over 10 years isn't enough "to make a dent" in the territory's infrastructure needs, but it's a start. 

"It will never be enough. We have a daunting task of trying to deal with our infrastructure shortfall in the territories. Do we want more? Definitely ... But this is a step in the right direction," said Kusugak.

Kusugak said it's still too early for details on which projects the government will undertake, and said it will consult with community governments and Indigenous organizations first.

"It's not a lot of money at the end of the day, so we need to make sure that where we do put it has the biggest bang for that dollar," said Kusugak.

The money is coming from part of the federal government's Investing in Canada plan — which promises $33 billion over 10 years in bilateral agreements for infrastructure across the country.

Nunavut's bilateral agreement announced Wednesday is only 1.7 per cent of the federal government's $33 billion plan.

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