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Money flowing

More than $800M being invested in irrigation projects in Alberta

Oct 9, 2020 | 11:52 AM

Praising the agriculture industry that he says has been a real bright spot and an economic engine in Alberta during the COVID-19 pandemic, Premier Jason Kenney announced on Friday an $815 million combined investment in agriculture through irrigation.

The premier said the money will “modernize and build new irrigation infrastructure and increase water storage capacity.”

He adds the investment is estimated to create 1,300 immediate construction jobs with up to another 6,800 permanent direct and indirect jobs to follow.

“We anticipate an expansion of irrigable land of up to 208,000 acres, boosting production and supporting diversification in the fast-growing, value-added food industry, which happens to be right smack in the middle of the irrigation districts in southern Alberta,” Kenney said.

Alberta taxpayers will be directly investing $245 million, the irrigation districts will finance $163 million. Kenney said the Canada Infrastructure Bank is providing a loan of $407.5 million to the irrigation districts over 35 years at one per cent interest.

Kenney said the new projects are good for farmers, food processors, jobs and the economy but is also good for the environment with open-air irrigation canals buried in pipes that will improve water retention and conservation.

Agriculture and Forestry Minister Devin Dreeshen said $520 million will go toward four off-stream reservoirs and $295 million will go to 56 modernization projects primarily converting open canals to underground pipelines.

Once complete the projects are expected to at $36 million per year to Alberta’s annual GDP and no new water allocations will be needed.

The province is partnering with eight irrigation districts, one of which is the Western Irrigation District around Strathmore.

Chair Dan Shute called the investment “generational.”

The other irrigation districts participating in the investment are: Bow River Irrigation District, Eastern Irrigation District, Lethbridge Northern Irrigation District, Raymond Irrigation District, St. Mary River Irrigation District, Taber Irrigation District and United Irrigation District.

Federal Minister of Infrastructure and Communities Catherine McKenna, joining the announcement virtually, said her government knows that in Alberta the agri-foods sector plays a critical role. She said the funding will help farmers enhance production and strengthen Canada’s food security.

“That’s good for Alberta, that’s good for their farmers, that’s good for ranchers. That’s also good for all Canadians who rely on food coming from Alberta,” she said.