Shantel Lipp
by Shantel Lipp Shantel Lipp

A Busy Season Ahead

While COVID-19 continues to decimate our lives – both personally and professionally – there is some good news to share.

In an effort to boost our struggling economy, stimulus funding from the federal and provincial governments has been received at the Saskatchewan Association of Rural Municipalities (SARM) head office. More than 60 projects are available to bidding contractors, with more projects to come over the next several weeks and months.

Don’t be surprised if we see close to 100 projects come to tender throughout the spring and summer.

SARM’s annual budget is usually around $14 to 15 million for roads, bridge and culverts, with approximately seven to 10 road projects each year. This year, we’ve already seen more than 60 road projects come available. More are on the way.

In fact, total funding for rural roads over the next three years is close to $45 million. SARM wants to enhance 163,000 kilometres of roadways in close to 100 RMs across the province. 

SARM initially announced 30 projects available for tenders in July 2020. An additional 30 projects hit the market in October and now they are waiting for provincial approval to unveil a third round of projects. 

In addition to road work, we’re likely to see ample projects that focus on bridge work – approximately 1,400 municipal bridges across the province are in need of repair. 

Total funding for bridge and culvert work is pegged at $31.5 million over the next four years.

Combine the wealth of projects from SARM with the work that is surely to come in relation to the Lake Diefenbaker irrigation project and we’re optimistic our industry will be humming for the next decade and longer.

More good news came from the provincial budget announcement on April 6. It was a surprise, albeit a pleasant one, to see the government invest more heavily than expected through the Ministry of Highways.

This is welcomed news for our industry and news we should celebrate. Though we do realize and respect the fact that a lot of people in the province have suffered losses, both with loved ones and financial assets. 

Let’s get to work! Stay safe, everyone.

Shantel Lipp
by Shantel Lipp Shantel Lipp

Budget Day Coming Up

No one is itching to return to 2020. 

But if there was a positive to pull from last year, it was a record $437.4 million in fall tenders from the Saskatchewan Ministry of Highways. That’s the largest dollar amount allocated to highway work in Saskatchewan history.

So, this message should serve as a reminder to our members that come budget day in Saskatchewan (April 6) to remember the bulk of money allocated to our industry happened in the fall. 

We should not expect to see a similar spend in our industry this spring. Yes, we’re likely to see more projects come our way on or shortly after budget day, but at a much lower dollar amount than what we’re accustomed to seeing.

Our industry is still seen as one that drives the economy. We have a good track record with the provincial government, and it has been fairly consistent with its budgets. I don’t see them reversing this trend despite deficit budgets in the short-term future.

What we should also anticipate this spring is word from several rural municipalities who received COVID-19 stimulus money. This money was granted specifically for road builds and repairs and short-span bridge work.

In addition to provincial stimulus money, the RMs also received money through the Infrastructure Canada program. 

We should expect to see more projects announced this spring related to this, as well as additional projects from other municipalities across the province. 

It’s no secret that both the federal and provincial governments believe our industry is critical to spurring the economy and pulling us out from this funk caused by the pandemic. 

Obviously, this is great news for our industry as it assures there’s work to be done for the foreseeable future. Both the federal and the provincial governments deserve praise.

Shantel Lipp
by Shantel Lipp Shantel Lipp

Gearing Up for a Busy 2021!

With the start of a new year often comes a feeling of optimism. We are starting fresh and putting the difficult year that was 2020 in our rear-view mirror.

Our industry was one of the few that weathered the storm and persevered through some challenging times. Yes, many of us adapted to changes and altered our routines to meet new health and safety guidelines to keep working through government-issued shutdowns and to keep our employees healthy.

Our hope is that a new year brings a semblance of normalcy back to our lives, both at work and at home. We already can look forward to a busy year ahead. If there was a positive to pull from last year it was several big-ticket projects are planned for our province over the next few years.

Saskatchewan will likely be the main beneficiary in a $10-billion commitment from the federal government to support irrigation projects in the prairies. This infrastructure plan will span the next three years, with approximately $1.5 billion expected to result in 700,000 acres of irrigated land. It’s expected to create close to 60,000 jobs.

The Lake Diefenbaker irrigation project is a top candidate to receive much of this federal support. And we should expect to play a major role in the development of this project for years to come.

Combine this funding from the federal government with a record $437.4 million in tendered projects announced last summer by the provincial government. That’s a full plate for our members.

Early in 2020, we heard Premier Scott Moe say, “Over the next two years, our government will invest $7.5 billion dollars in…highways, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan.”

Obviously, this is great news for our industry as it assures there’s work to be done for the foreseeable future.

This funding represents a $2 billion increase over the government’s existing capital plan. The resulting projects are expected to support 10,000 jobs. More than $300 million of the funds are intended for highway projects, including surface upgrades and passing lanes, with almost $50 million dedicated to upgrades to municipal roads and airports.

The pandemic that still lingers today wreaked havoc on global economies. The road to economic recovery here and across the country starts with our industry.

Here’s to a busy season for our members and a prosperous and healthy new year!

by Shantel Lipp Shantel Lipp

Great News, Finally

“Over the next two years, our government will invest $7.5 billion dollars in … highways, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan.” – Premier Scott Moe, May 2020

There’s no other way to say it – this is great news for our industry, for our members and for the Saskatchewan economy.

Prior to the COVID-19 pandemic, the provincial economy was already facing headwinds through depressed resource prices, anti-pipeline policies and rail blockades. The announcement will mean a big boost in the arm not only to the construction industry but to the province.

The provincial government heard what industry has been saying and stepped up in a big way.

The road to economic recovery here and across the country starts with our industry. Premier Moe believes that, too. The money being spent now will create a legacy serving the economy for the next 50 years.

The funding represents a $2 billion increase over the government’s existing capital plan. The resulting projects are expected to support 10,000 jobs. More than $300 million of the funds are intended for highway projects, including surface upgrades and passing lanes, with almost $50 million dedicated to upgrades to municipal roads and airports.

Without question, this stimulus funding will balance the need for smaller, short-term projects to spark the economy and get people back to work with longer-term, large-scale projects that leverage multiple sectors over the next several years.

Approximately $1.37 billion of the new funding is committed for large infrastructure projects to be announced in the future.

We’re hopeful this financial support will aid our members who have been struggling and keep them busy for the foreseeable future.

Last month, I encouraged our members to be ready. Now is our time to lead this province and kickstart our economy. Be safe!