by SHCA SHCA

$28 Million Invested in Rural Integrated Roads for Growth Program

36 RMs to Receive Road Grants in First year of Plan

The provincial government is investing $28 million to improve rural roads in Saskatchewan rural municipalities (RMs). Thirty-six RMs will receive funding this year, which will cover up to 50 per cent of total projects’ costs to a maximum of $500,000.

This is the first year of a three-year plan with the Saskatchewan Association of Rural Municipalities (SARM) to improve 100 rural roads through the Rural Integrated Roads for Growth (RIRG) program. The program will also provide grants to improve RM bridges. Details are being worked out and will be announced at a later date.

“Our government is investing in infrastructure that keeps our rural economies growing and improves safety,” Highways and Infrastructure Minister Greg Ottenbreit said. “This program supports rural infrastructure in addition to assisting with the economic recovery from the COVID-19 pandemic.”

In addition to helping RMs address their infrastructure challenges, the RIRG program also supports agriculture, energy, forestry and other rural-based sectors.

“Many rural areas are in dire need of investments to help alleviate the stress on their current infrastructure,” said Ray Orb, president of SARM. “The provincial program helps support the cost of constructing and upgrading municipal roads, bridges and culverts in rural Saskatchewan.”

“We continue to work with SARM on a plan to address RM bridges and expect to have details available in the coming weeks,” Ottenbreit said.

Formerly known as the Municipal Roads for the Economy Program, the RIRG will continue to assist RMs with the costs of constructing and upgrading municipal roads, bridges and culverts to support growth.  One of the changes is allowing RMs to complete construction projects over two years.  

Some rural road projects have been approved already, so work can begin this construction season.  A second intake for additional projects will begin soon.

The Government of Saskatchewan has invested more than $9.8 billion in highways infrastructure since 2008, improving more than 15,500 km of Saskatchewan highways.  Another $300 million in highways stimulus funds will be invested over the next two years to stimulate Saskatchewan’s economic recovery.

by SHCA SHCA

Available Accommodations for the Coming Construction Season

SHCA has been working with the Ministry of Highways and Tourism Saskatchewan to secure accommodations and meals for our member company work crews during the COVID-19 pandemic. Tourism Saskatchewan has been working with its members over the past couple of weeks, with more responses still to come in, and have begun to compile a list for SHCA members.

This list is continually being updated and will be shared throughout the construction season. This is not an all-inclusive list and we would encourage you to contact municipal offices to see what may be available in some communities not currently shown on the downloadable spreadsheet.

Please download the spreadsheet to see the various hotels/restaurants currently with the capacity to house work crews. We hope you find this helpful.

by SHCA SHCA

Major Infrastructure Stimulus Plan Announced by Saskatchewan Government

A two-year capital plan, worth $7.5 billion, aimed at building a strong Saskatchewan and stimulating the economic recovery from the impact COVID-19 was announced earlier this month by the provincial government.

“Over the next two years, our government will invest $7.5 billion dollars in schools, hospitals, highways, Crown utility projects, municipal infrastructure and other important capital projects designed to build a strong Saskatchewan,” Premier Scott Moe said. “This is a $2 billion economic booster-shot over and above the $5.5 billion our government had already planned to invest in capital projects over the next two years and will be an important step in our province’s economic recovery.”

Read the full story from CKRM.

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!

by SHCA SHCA

Notice of Sale and Investment Solicitation Process

JMB Crushing Systems Inc.

On May 1, 2020, JMB Crushing Systems Inc. and 2161889 Alberta Ltd. (Collectively “JMB”) were granted a stay of proceedings (the “Initial Order”) from the Alberta Court of Queen’s Bench issued under the Companies’ Creditors Arrangement Act (the “CCAA”). FTI Consulting Canada Inc. (“FTI”) has been appointed Monitor.

In connection with the CCAA proceedings, the Court has authorized the implementation of a sale and investment solicitation process (the “SISP”). As part of the SISP, Sequeira Partners has been engaged as the Sale Advisor and is soliciting proposals from qualified interested parties.

For over 30 years, JMB has been producing and supplying aggregates for leading oil field companies, road construction, and industrial projects throughout Alberta. The business has access to numerous gravel pits and maintains a significant inventory of aggregate for immediate distribution with one of the largest reserves of aggregates in Alberta.

All qualified interested parties will be provided with an opportunity to participate in the SISP. The SISP is intended to solicit interest in the sale of, or investment in, JMB or all or any part of JMB’s property, assets and undertakings and its business operations on an as is where is basis. The SISP Process is a two-phased process with the Phase 1 bid deadline set for June 19, 2020. The completion of any proposal shall be subject to the approval of the Court.

Copies of court ordered documents and the SISP may be obtained from the Monitor’s website at cfcanada.fticonsulting.com/jmb/

Those interested in participating in the SISP can contact the Sale Advisor to receive additional information at sequeirapartners.com/JMB , jmb@sequeirapartners.com or 780-784-0124.

by SHCA SHCA

“Status Quo” Budget Could Spell Doom for Industry

The 2019-20 budget estimate tabled in March by the Saskatchewan Ministry of Highways of Infrastructure provided a familiar refrain.

The Saskatchewan Heavy Construction Association didn’t expect any surprises or a significant shift in infrastructure spending for this upcoming season. That’s exactly what was delivered, which could present positive and dramatically negative outcomes for the industry in the near future.

“This was a status quo budget,” said Shantel Lipp, SHCA president. “Taking into account the challenges the government is facing with Covid-19, we realize the budget could have been a lot worse.”

“(The government) should be commended for sticking to its Growth Plan and trying to advance it despite these challenges and circumstances.”

The overall budget for the Ministry of Highways and Infrastructure for 2019-20 is $648 million, a drop of more than $50 million from last year’s budget. However, the $358 million set aside for capital expenditures slightly increased from 2018-19.

The Urban Highway Connectors program also saw a slight bump from $6.7 million to $7.3 million. The Rural Integrated Roads for Growth program received $1-million boost in funding and the Community Airport Partnership saw an increase of $150,000.

“In terms of municipal spending, this is a positive budget,” Lipp said.
The government remained dedicated to safety by providing $13 million to enhance intersection safety and $7 million in safety improvements to alleviate frequency and severity of collisions. This is the second year of the government’s five-year, $100-million commitment to highway safety.

Where this budget could spell doom for Saskatchewan contractors is related to the major projects for the upcoming construction season. The major projects that were announced this year are carried over from the previous year, meaning there is no new work available for what is already an extremely competitive market.
Lipp noted that neighbouring provinces Alberta and Manitoba are struggling with member retention. She said it’s not because their respective associations are not delivering the services required. It’s because the investment in infrastructure isn’t there.

“The amount of infrastructure that is being built hasn’t increased,” Lipp said. “The challenge for our industry is not the dollars being spent but the number of kilometres the industry has the capability to build. If there is no commitment to increasing the number of kilometres that the government is going to build or maintain, we’re going to see more companies go out of business.”

A dried-up market forced several Saskatchewan-based contractors to cease operations in 2019. Lipp expects that trend to continue this year.

“Competition levels are going to be incredible this year because everybody is looking for work and everybody is struggling to find work,” she said. “Any prolonged delays in building is only going to cost taxpayers more and going to deplete the capacity of the industry.”

For more information:
Shantel Lipp
President, Saskatchewan Heavy Construction Association
slipp@saskheavy.ca
306-586-1821