Transportation & Infrastructure Minister Lisa Naylor says she and her department are intent on expending the entire highways capital budget for 2025, and will work with MHCA and the industry to improve processes to get that done.
The minister made the commitment in a meeting she called with MHCA and Board representatives March 27 in her office, to discuss reaction to the 2025 budget. The highways capital budget was increased from $500 million to $515 million, a hike of 3%.
Naylor noted the increase to the department’s total 2025 “infrastructure asset” budget is 10% — $584.5 million compared to 2024’s $534.7 million. Along with increased highways capital, that total includes:
- $10.5 million for airports; an increase of $5.3 million
- $45 million for water-related infrastructure; an increase of $16.5 million
- $15 million for flood mitigation (flood mitigation was included in water-related in 2024)
She said the provincial government would not be reinstating the policy of carrying over unexpended funds to the subsequent year’s budget, stressing work needs to be done to ensure that projects funded within the annual program are started and completed with the year.
Unintended carryover, which includes projects that could not start or finish due to weather or other circumstances, for 2024 was approximately $31 million.
Unexpended budgeted funds will be diverted, at the end of each fiscal year, to deficit reduction, she said.
The minister said given the economic hit expected from the tariff war, the department is pleased with the budget increase. Highways investment, while a portion of the overall infrastructure plan to buffer the trade-war impact, is still an important part.
MHCA President & CEO Chris Lorenc said 3% doesn’t approach the annual increases required to address both the infrastructure investment deficit – more than $9 billion for highways and bridges – or to invest strategically in the trade corridors and gateways.
Premier Kinew, Lorenc noted, has since the first days of the NDP government committed to investment in trade corridors and gateways, to ensure trade through Canada and to global markets is expanded.
The investment is critical now, given the tariffs, to protect the outsized profile that trade holds in the economies of both Canada and Manitoba – 65% of the national GDP and 53% of Manitoba’s.
Naylor said those large projects will require the federal government coming to the table and investing with provinces for infrastructure.
The MHCA stressed the full rollout of the annual program will depend upon:
- Ensuring the design engineering assignments are tendered and awarded early, to allow for tendering of projects to the construction industry well before the season starts.
- Improving the reliability of the tender ad schedule – getting projects tendered according to the date set out – so industry can set up their business plans.
- Award 80% of the annual program by the end of February
- Pay contractors promptly when work meets progress and completion deadlines
