Saskatchewan's Infrastructure Investment Hits $30 Billion Amid Industry Concerns

📅 5 days ago

The Saskatchewan government is set to meet its $30 billion infrastructure investment goal by 2030, despite criticisms from industry leaders about slow contract rollouts and rising debt concerns.

Construction activity in Saskatchewan is witnessing significant growth as the provincial government aims to achieve its ambitious $30 billion infrastructure investment target outlined in the 2030 Saskatchewan Growth Plan. Sean Wilson, the Minister of SaskBuilds and Procurement, highlighted that the spending for the 2026-27 fiscal year is projected to reach $4.3 billion, with allocations of $1.8 billion from the executive government and $2.5 billion from crown corporations. Wilson expressed optimism about the province's economic performance, noting it surpasses the national average.
However, not all stakeholders share this enthusiasm. Shantel Lipp, president of the Saskatchewan Heavy Construction Association, voiced concerns regarding the slow pace at which roadbuilding contracts are being released. She pointed out that several asphalt plants in the province remain idle due to this delay, which is exacerbated by the short construction season in Saskatchewan. Lipp emphasized that late tendering negatively affects contractors' ability to mobilize resources, secure materials, and schedule crews, ultimately risking project delivery and efficiency.
In the backdrop of these challenges, the Canadian Taxpayers Federation has urged the Saskatchewan government to curtail its spending as the province's debt continues to rise. Despite these criticisms, the province is moving forward with a robust capital expenditure program, which includes 20 major projects and an additional 136 planned initiatives. Currently, there are approximately 60 major private projects valued at $62 billion either proposed or underway, according to Wilson.
Wilson underscored the scale of investment, noting that the crown corporations’ budget of $2.5 billion includes substantial allocations such as $1.7 billion for SaskPower's electricity system, $433 million for SaskTel's information and communications infrastructure, and $308.8 million for SaskEnergy's transmission and distribution framework. Recent industry statistics indicate that employment in the construction sector has surged from 42,700 to 51,300 over the past year, driven by an influx of new residents which has led to an 84% increase in housing starts within the first half of 2025.
In response to the growing construction activity, the government has launched a Monthly Construction Update to showcase ongoing projects and the teams behind them. The inaugural April profile highlighted a significant retrofit of a warehouse in Regina by Graham Construction and Engineering LP, transforming it into a 70,000 square foot Research, Exhibits, and Collection Facility for the Royal Saskatchewan Museum. Wilson, who has roots in the construction sector, emphasized the importance of acknowledging those who contribute to building the province.
Among the notable projects underway is the $850 million multi-storey acute care tower at Victoria Hospital in Prince Albert, which is at its mid-point and set for completion in 2028. Other significant initiatives include a $56 million specialized long-term care facility in Regina, expected to open in fall 2028, and the $134 million Weyburn General Hospital, which is currently under construction by Wright Construction Western Inc.
The Saskatchewan government has also been active in enhancing its road infrastructure since taking office in 2008, having upgraded 23,000 kilometers of highways. The 2026-27 budget allocates $417.2 million for the improvement of an additional 850 kilometers. However, Lipp cautioned that while the province touts one of the largest capital plans in recent times, the reality reflects a decline in investment in the highway network, with a budget reduction of approximately $21 million.
Wilson reiterated the government’s commitment to transportation infrastructure as a means to foster growth in the province and support the resource sector. He pointed to Bell Canada’s recent announcement of a $1.7 billion data center near Regina and the burgeoning mining sector, particularly in uranium and alumina, which are reliant on power. Notably, a large deposit of alumina has been identified near Tisdale, where Canadian Energy Metals is conducting a pre-feasibility study for the $6.3 billion Thor property.
The government’s $1.7 billion North-South Transmission Systems Interconnection project aims to link the northern and southern power grids, facilitating new mining opportunities in the resource-rich northern regions of Saskatchewan. Proposed uranium projects by Denison Mines Corp. and NexGen Energy Ltd. are expected to create over 1,600 construction jobs and employ more than 700 individuals during their operational phases, with a total estimated investment of $2.8 billion.
Despite ongoing criticisms from the Canadian Taxpayers Federation regarding rising debt, which is projected to incur over $1 billion in interest payments in 2026, Morningstar DBRS has assessed the province's debt as manageable due to its resilient economy. In response to concerns about debt, Wilson maintained that fostering economic growth will enhance tax revenues, allowing for continued investment in Saskatchewan’s future.

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