INFRASTRUCTURE FUNDING FOR WAKAW-HUMBOLDT REGIONAL WATER SUPPLY SYSTEM

Released on May 19, 1995

Lloyd Axworthy, minister of Western Economic Diversification and

implementing minister of the infrastructure program in Western Canada,

and Eldon Lautermilch, minister responsible for the Saskatchewan Water

Corporation, today announced approval of funding under the

Canada-Saskatchewan Infrastructure Works Program for a regional water

supply system to deliver treated water to almost 10,000 people in the

Wakaw-Humboldt area.



Treated water will be distributed to 10 communities and six rural

municipalities, including the towns of Hoey, St. Isadore-de-Bellevue,

Carmel, Domremy, Wakaw, Bruno, Humboldt, Muenster, Lake Lenore, and the

resort village of Wakaw Lake; and the rural municipalities of St.

Louis, Bayne, Humboldt, Fish Creek, St. Peter and Hoodoo. There is the

potential for other communities to become part of the system at a later

date.



The project is expected to create up to 531 direct jobs during the

design, construction and installation phases, five long-term jobs and

hundreds of indirect jobs resulting from economic development

activities made possible by the water system.

Estimated cost of the project is $31,841,900. Through the

Canada-Saskatchewan Infrastructure Works Program the federal government

will contribute $2,800,000 and the province will contribute

$25,220,900, amortized over a 30-year period by water users. The

federal-provincial Partnership Agreement on Water-Based Economic

Development (PAWBED) will also contribute $3,821,000.



The regional water system will consist of a pump station on the South

Saskatchewan River west of Wakaw, a water treatment plant located

either in Wakaw or close to the river, and approximately 200 kms of

pipeline.



Mr. Axworthy said: "Through co-operative efforts of the various levels

of government the infrastructure program is responding to community

needs with the most extensive Saskatchewan project to date. Projects

like the regional water supply system are the core of the

infrastructure program. They stimulate the economy, create jobs and

provide long-term support for future economic growth, benefiting all

Canadians."



"A reliable supply of good quality water will not only resolve these

communities' concerns about their water supply but will allow expansion

of the region's economic development potential," Lautermilch said.

"The stability of an assured water supply will encourage residents and

industries to remain in the area and will attract other industries,

particularly value-added processing in the agricultural sector."



Mayor Jerome Strasser of Bruno, chair of the project's regional

steering committee, said the regional water supply system will bring

economic stability and allow the region to withstand the cycles

normally associated with an agricultural economy.

"It will lead to increased livestock production, more and bigger

processing plants, more projects that are regional in nature and more

jobs for the area," Strasser said.



Design of the project will be completed this summer. Construction of

the pump and treatment plants will begin this fall with pipeline

construction to begin in the spring of 1996. Completion of the system

is scheduled for late fall, 1996.



The Canada-Saskatchewan Infrastructure Works Agreement was signed in

January, 1994. It enables Canada, Saskatchewan, municipalities, and

the private sector to co-operatively undertake and fund projects which

will renew and improve the quality of the public infrastructure and

create employment opportunities for Canadians.



To date, more than $205 million has been approved for 778

infrastructure projects in the province.



Federal funding for the Infrastructure Works Program was provided for

in the February budget as part of the federal government's priorized

spending program.



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For more information, contact:



Tim Krause

Acting Communications Manager

Western Economic Diversification Canada

Saskatoon - Phone: 975-6001

Regina - Phone: 780-6725



Russ Krywulak

Director

Canada-Saskatchewan Infrastructure Program

Regina

Phone: 787-8808



Wayne Phillips

Vice-president

Finance & Corporate Services

Sask Water Corporation

Moose Jaw

Phone: 694-3909

Canada-Saskatchewan Infrastructure Works Program



REGIONAL WATER SUPPLY SYSTEM ANNOUNCEMENT

FACT SHEET



Background



ù All communities in the project region have suffered from serious water shortages and water quality

problems. Surface and shallow ground water supplies are marginal even in times of normal runoff and

are very difficult to treat because of high organic content.

Deep ground water sources used by most communities and farmers in the region are very highly

mineralized and expensive to treat. It is also expensive to maintain the wells.

All supplies typically fail to meet water quality guidelines.



ù Poor water quality has seriously impaired the growth and economic vitality of the communities in the

project region.



ù The concept of a water supply project was first initiated by the Town of Wakaw in the late 1980's. At

that time, cost was a major constraint.



ù To explore economies of scale and deal with similar water quality and quantity concerns in a broader

area, Sask Water undertook a conceptual design for a regional water supply system in 1992.



ù In 1994, Sask Water and the Prairie Farm Rehabilitation Administration (PFRA) assigned a joint

project design and review team to work with a local steering committee to develop a project proposal

for possible funding by the Canada-Saskatchewan Infrastructure Works Program and the Partnership

Agreement on Water-Based Economic Development (PAWBED).



ù The steering committee is chaired by Mayor Jerome Strasser of Bruno and includes the mayors of

Cudworth and Humboldt, the former administrator of Wakaw and the reeve of the R.M. of Hoodoo.



ù Infrastructure program and PAWBED funding will result in a cost of approximately $6.20 per 1000

gallons for the users.



ù PAWBED is a multi-million dollar federal-provincial initiative to stimulate water-based rural economic

activity. It is funded on a 50-50 basis by the federal and provincial governments and administered by

Sask Water and PFRA.



Project Benefits



ù The regional water supply system will provide a permanent, assured supply of high quality water to a

large area of the province that has experienced water supply and quality problems.



ù The system will provide economic stability and will support agricultural diversification and value-added

processing in an area that has been predominantly mixed farming.



ù An assured supply of high quality water can be expected to result in increased livestock production.

For example, hog production is expected to increase by 600,000.



ù Communities in the region have been actively exploring processing opportunities. Humboldt has already

identified a number of economic development opportunities that require improved water supplies.



ù Production and processing activities will be able to proceed because of the system, providing the region

with many additional economic benefits including:

ù hundreds of new jobs;

ù increased opportunities for local suppliers of goods and services;

ù markets for locally-produced agricultural commodities;

ù increased sales of higher-value processed agricultural products; and