Offer contingent on Ottawa paying 50 per cent of project cost
By TOM PETERS
June 21, 2010
The Nova Scotia government has committed $15.2 million to the Sydney harbour dredging project. Deputy Premier Frank Corbett said the province is prepared to contribute 40 per cent of the project cost contingent on the federal government paying 50 per cent or $19 million.
It is unclear if Ottawa will commit. Enterprise Cape Breton Corporation, a federal agency in Sydney, recently said the requested $19 million is not a budgeted item, so the money is not available. But it didn’t rule out Ottawa giving the project future consideration.
Jim Wooder, chair of the Sydney Marine Group, which is behind the $38-million project, said ECBC’s comment, in his estimation, doesn’t change anything and the federal government still has the project under consideration.
The plan calls for dredging of the 8.5-kilometre entrance channel to the harbour to a depth of 17 metres. The increased depth would allow for deeper-draft bulk cargo and container vessels. It would also offer important infrastructure for other potential industries such as shipbuilding and a new container terminal.
Cape Breton Regional Municipality has committed $2 million to the project and Nova Scotia Power $1 million.
“It’s not often that a project comes along that offers the opportunity to change the economic direction of a region,” Mr. Corbett said.
The deputy premier called the dredging project a turning point for Cape Breton.
To encourage the federal government’s participation in the project, Mr. Corbett will lead a mission to Ottawa to help secure funding.
Netherlands-based Boskalis International had been deemed the favoured bidder on the project, but since the funding had not been secured, deadline for acceptance of the bid has past. However, Boskalis said it is willing to work with the Sydney group when the money is in place.