RESOURCE ROAD PROGRAM  (RRP)

Overview

The Resource Road Program (RRP) was announced on April 8, 2003, as part of the Government's 2003 Budget commencing April 1, 2003.  Budget 2010 provides a further one-year extension to the RRP, to 2012/13.

Benefits of Program

The RRP is intended to provide funding assistance to local municipal road authorities for the movement of goods and people associated with new or expanded, value-added processing facilities, resource and other industries, intensified farming operations, or high through-put grain elevators.

The program will apply to local roads and bridges, including intersection improvements with provincial highways.  Roads must be open for use by all publicly-licensed vehicles and not be subject to any municipal general user fees.

Funding Policy

Municipal districts, counties, Metis settlements, the Special Areas, towns, villages, summer villages, and any area of a specialized municipality outside the defined urban services area are eligible for assistance under this program.  Commencing April 1, 2010, the program will provide cost-shared funding on the basis of 50% Government, 50% municipal, up to a maximum provincial grant amount of $3,000,000 per project.  Municipalities are now eligible to receive only one project approval every two years, regardless of the size of the project.

The applicant municipality is encouraged to provide 25% of the funding required, and to acquire a contribution of 25% from the private sector.  No other federal or provincial programs (excepting AMIP and MSI) of any kind may be used to fund the applicant's share.  

In order to assist municipalities with roads heavily used/impacted by non-local or through-trips, the program may provide up to 75% funding for approved projects, up to a maximum grant amount of $4,500,000 per project, where the project is approved on the basis of "through-truck trips".

Eligible projects will be prioritized on a provincial basis, with the highest-priority projects receiving approvals commensurate with the available budget.  Approved projects may be eligible to receive funding in trust, with any interest earned to be put towards the project.  

Transportation of goods and people must relate to new value-added processing facilities, intensified farming operations, resource-based industrial development, or high through-put grain elevators which began operation or were expanded in 2007 or later.  The road must be used by at least 25 trucks per day on average during any three-month period of the year.  Paving may be considered and included in the project if the current total traffic volumes exceed 400 vehicles per day (AADT).

Private sector contractors and suppliers must be used to carry out all work claimed under this program.

It is expected that approximately $98 million will be available over the next three fiscal years.  The annual funding amounts are subject to the approval of the department's business plan.