APEC Predicts a Strong Year for Maritime Investment Projects
HALIFAX–It’s looking like a strong year ahead for investment projects in the Maritime provinces, according to the Atlantic Provinces Economic Council (APEC)’s 33rd annual Major Projects Inventory released this morning.
More than 400 major investment projects, collectively worth $125 billion, are planned or underway in Atlantic Canada. The Major Projects Inventory, which includes projects valued at $25 million or more ($10 million or more in PEI), also predicts investment in major projects will be $12.8 billion this year, down about 2% over 2015.
“Spending is up strongly in Nova Scotia and Prince Edward Island and it continues to improve in New Brunswick too,” said APEC director of major projects Patrick Brannon. “The slowdown in Newfoundland and Labrador will continue this year, but we predict spending could improve there again in 2017.”
The Major Projects Inventory estimates a 14 per cent decrease from a year ago to $6.5 billion for Newfoundland and Labrador. Much of this decline is due to the winding down of the construction phase of the Hebron project and lower spending on other offshore projects.
Major project spending in Nova Scotia is expected to go up 19 per cent from last year to $3.9 billion, a number led by the first full year of construction of Arctic Offshore Patrol Ships at the Halifax Shipyard. Spending will grow by another 5 per cent in New Brunswick, led by electricity projects, public sector infrastructure and the Saint John Safe Clean Drinking Water project. Prince Edward Island boasts the highest percentage increase in spending in 2016 at 49 per cent. The $358 million includes work on the PEI-New Brunswick Interconnection Upgrade.
“Next year, construction activity on the Hebron oil project will wind down, offshore exploration will take a pause in Nova Scotia, and Prince Edward Island’s transmission project will be out of the equation,” said Brannon. “However, federal stimulus spending and Vale SA’s nickel mine in Labrador will support investment in 2017, and increasing offshore exploration and mining activity could bring investment back into positive territory.”
APEC anticipates a $1.1 billion flow to Atlantic Canada through the first phase of stimulus from the federal government. They also expect that this funding will draw out funding from other levels of government for clean water, wastewater, transit, affordable housing and other infrastructure projects.