Province to borrow $700 million for capital projects

(File photo)

The Saskatchewan government will borrow $700 million for capital projects next fiscal year.

The province’s budget, released Wednesday, included a record-setting $3.3 billion in infrastructure spending and marked the start of a $5.8-billion, four-year capital plan.

“Saskatchewan’s capital needs continue to grow and delaying needed projects would mean higher construction costs down the line,” said Finance Minister Ken Krawetz.

The Saskatchewan Builds Capital Plan, which includes numerous highway projects, calls for $1.3 billion to be spent on capital projects in 2015-16. A major chunk of the funding — $700 million — will be borrowed from the marketplace.

“Our high credit ratings, positive outlook, and resilient economy combined with historically low interest rates provide a strong foundation from which to borrow to build,” Krawetz said.

The balance of the 2015-16 capital plan will be financed through public-private partnerships, federal funding, operating contributions and proceeds from the 2013 sale of the Information Services Corporation, the province said in a media release.

A debt repayment plan will see at least two per cent of the borrowed funds set aside and invested each year.

The Saskatchewan Builds plan calls for $581 million to be spent on transportation projects, including $211 million for the Regina Bypass project as well as several million devoted to twinning highways and building passing lanes.

Other capital budget highlights include $157.4 million devoted to beginning construction on nine joint-use schools in Martensville, Regina, Saskatoon and Warman, just under $130 million to start construction on the Saskatchewan Hospital North Battleford-Integrated Correctional Facility, and $64.9 million to fund construction of a long-term care facility in Swift Current.

To view an in-depth breakdown of capital expenses and other budget items, view CTV’s budget highlights story.