Top News

Mega-project spending takes a dive in N.L. for second year

 ..
..

Major project investment in Newfoundland and Labrador will fall another 15 per cent this year to $6.4 billion, well below the $9.2 billion peak in 2013, according to a major projects inventory (MPI) released by the Atlantic Provinces Economic Council (APEC). 

    That's on the heels of last year’s 14 per cent decrease.

    Most of this year's decline is due to the slowing of major construction on the Hebron project, though Husky’s announcement it will proceed with its West White Rose project will help slow the decline in investment, APEC said.

  • APEC said public infrastructure projects will help, and work on Muskrat Falls and the Maritime Link project will continue to boost electricity-related spending this year.

Capital spending on major projects in Atlantic Canada is expected to fall by seven this year to $13 billion, but the long-term potential for investment across the region is on the upswing, APEC said.

The Inventory identifies 412 projects in various stages of development, with a total value of $132 billion, a six per cent increase over last year and a record high in the 34 years APEC has produced the MPI.

Nova Scotia leads the way in total Inventory value at $62 billion, led by shipbuilding projects and proposed liquefied natural gas (LNG) projects.

An overall decline in energy-related spending will result in a decline in 2017 everywhere but New Brunswick, where growing infrastructure, electricity and transportation investment will result in an 18 per cent surge in investment to $2.3 billion.

“Public infrastructure has helped support capital investment in Atlantic Canada in 2017 and will continue into 2018,” said Patrick Brannon, APEC’s director of major projects.

“The next phase of federal investment is expected to be targeted at more productive infrastructure that will create a cleaner economy, efficient transportation systems and facilitate international trade.”

Public sector infrastructure spending shows the biggest increase this year over last –  up almost $250 million in 2017 , mostly in Newfoundland and Labrador and Nova Scotia.



Recent Stories