Residents of Penobsquis will have access to safe drinking water through a new regional water supply system. Today, the governments of Canada and New Brunswick proceeded with the official sod-turning to mark the beginning of construction of the new system.

The total estimated cost of the project is $9.3 million. Under the Canada-New Brunswick Agreement on the Transfer of Federal Gas Tax Revenues and the Provincial Gas Tax Transfer Top-up Fund, federal funds are $7,795,000 and provincial funds are $205,000. The Potash Corporation of Saskatchewan (Potash Corp) is contributing $1.3 million.

Rob Moore, MP for Fundy-Royal, on behalf of Lawrence Cannon, minister of transport, infrastructure and communities, and Premier Shawn Graham took part in the sod-turning event in Penobsquis.

The new water supply system consists of approximately 12 kilometres of pipe to distribute the water to the residents. The system will also include a well house where chlorination will be introduced and an above ground water reservoir for water storage.

New Brunswick municipalities will receive $116.1 million from the Gas Tax Fund from 2005 to 2010, to which New Brunswick will add $30 million. Following Budget 2007, a further $178.5 million in gas tax funding will flow to New Brunswick communities from 2010 to 2014, for a total of $294.6 million in federal funding over nine years.

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