Federal Government's $7.8 Billion Infra Fund To Boost Ontario's Economy

Ottawa, Canada (AHN) - Canada's once premier province Ontario will get a much-needed economic boost with a $7.8 billion infrastructure fund.

The federal government announced the funding for the Ontario provincial government, which will use the money for public transit, roads and bridges.

The infrastructure fund is part of the $33-billion Building Canada plan set aside by the Harper administration over seven years to maintain and expand the country's infrastructure system.

Ontario is the latest Canadian province to ink a framework agreement with the federal government, which has guidelines on how the funds should be used. British Columbia was the first to sign an agreement. Alberta, Manitoba and Quebec have not yet signed an agreement with Ottawa.

The deal will be signed Thursday in London, Ontario, followed by a news conference. Canadian Finance Minister Jim Flaherty and Transport, Infrastructure and Communities Minister Lawrence Cannon will make the announcement. Provincial Finance Minister Dwight Duncan and Public Infrastructure Renewal and Energy Minister George Smitherman will represent Ontario.

Among the projects identified by Ontario to be included in the $7.8 billion funding are a clean-water initiative in London and nearby areas.

An unnamed senior federal official, commenting on the bold initiative, told the Toronto Star, "At a time of economic challenge, at a time when the auto industry is problematic in Ontario... can you imagine what $7.8 billion will do? It will create jobs, create projects, hire people to do these projects."