The Government of Canada announced today that the Town of Cape St. George has been approved for two infrastructure loans as part of Canada’s Economic Action Plan.

The announcement was made by the Honourable Ethel Cochrane, Senator for Newfoundland and Labrador, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development Canada and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC).

The Town of Cape St. George has been approved for more than $230,000 in low-cost loans from CMHC’s Municipal Infrastructure Lending Program (MILP), to expand the central water system in St. George and to rebuild the bridge and upgrade the road serving residents in the resettled community of Loretto, NL.

“Our Government understands the importance of infrastructure in maintaining strong and prosperous communities,” said Senator Cochrane. “This program is opening the door for municipalities of all sizes to meet their housing-related infrastructure needs and create jobs. It’s good news not only for the Towns of Cape St. George and Loretto, but also for Newfoundland and Labrador.”

Canada’s Economic Action Plan provides up to $2 billion in direct low-cost loans to municipalities, over two years, for housing-related infrastructure projects through the MILP. Municipal infrastructure loans are available to any municipality in Canada and provide a new source of funds for municipalities to invest in housing-related infrastructure projects. These low cost loans can also be used by municipalities to fund their contribution for cost-shared federal infrastructure programming.

“Extending our water system and providing access to Loretto have been our priorities for the last four years,” said Mr. Peter Fenwick, Mayor of Cape St. George. “The CMHC low-cost loans will enable us to take on both projects without having to increase taxes. Altogether they save us up to $10,000 a year in interest charges.”

Eligible projects include infrastructure related to housing services such as water, power generation and waste services, as well as local transportation infrastructure within and into residential areas, such as roads, sidewalks, lighting and green space.