With inflation driving construction costs higher than in previous years, local service distracts are having trouble coming up with the 10 per cent in funding they need to tackle important infrastructure upgrades.

When small communities and local service districts in Newfoundland and Labrador need to build roads or water treatment plants, most of the cost is covered by the provincial government.

But some districts have started to run into problems, when jobs can no longer be done for the amount of money available by the time tenders go out.

Clifford Baker, vice-chair of the local service district committee in Newman’s Cove on the Bonavista Peninsula is experiencing the struggle first-hand.

The community has been under a boil-water order since 2008 and is trying to fix its water system.

“The pipes going through the cove and to people’s houses are older. We need another new system. That’s what we’re fighting for now,” Baker said in a recent interview. 

The new water system will cost about $2.2 million. Newman’s Cove’s share amounts to about $220,000. 

Baker said the district was approved for $250,000 last fall to get the project done but only one contractor made a bid on the construction.

Then the start date was pushed to the spring and the cost of the project has gone up because of the fluctuating cost of oil.

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