EDMONTON (Sept. 8, 1999) — The Alberta government will spend $900 million in upgrades to municipal roads over the next three years, using money from the provincial fuel tax pool.

The plan, which launches next April, is designed to bring relief to the streets and truck routes of Edmonton and Calgary. In those cities, infrastructure upgrades will be paid for from a grant equivalent to five cents per litre for all fuel sold within those cities. Currently, this amounts to approximately $85 million per year for Calgary and $65 million per year for Edmonton, although the amount of the grant will fluctuate with the actual amount of fuel sold in each city..

The new fuel tax grants will replace per-capita provincial infrastructure grants going to Edmonton and Calgary now. The province also has agreed to take over maintenance and construction of several major truck routes: Deerfoot Trail and Stoney Trail in Calgary, and the North South Trade Corridor route in Edmonton (once the province completes construction of the South West Ring Road).

The new transportation plan was outlined by Premier Ralph Klein and members of the Premier’s Task Force on Infrastructure yesterday. “This is not a new tax or a tax increase … I’d appreciate you quoting me on that,” Klein told yesterday’s press conference.

“The increase in funding and switch in responsibility for key primary highways through the cities will allow them to concentrate on things like LRT expansion and upgrading of local road networks,” he said.

Smaller cities and towns will continue to receive per capita transportation grants, currently about $60 per capita. The province will assume responsibility for construction and maintenance on key primary highways along major trade corridors bisecting the cities, specifically Hwy 63 in Fort McMurray; Hwy 1 in Medicine Hat; the North/South Trade Corridor route in Lethbridge; and Hwy 43 in Grande Prairie. It will also take over construction and maintenance on all secondary highways. Cities may apply for additional funding on a project-specific basis.