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CGE LIMESTONE CONTRACT SIGNED Includes Benefits Package: Parasiuk

Energy and Mines Minister Wilson Parasiuk has announced the signing of a contract between Canadian General Electric (CGE) and for the supply of turbines and generators for the Limestone Generating Station. As a result of being awarded this contract, CGE and the Manitoba Energy Authority (MEA) have signed an agreement whereby CGE will deliver a comprehensive industrial benefits package to Manitoba. Speaking at a May 2 luncheon organized by the MEA and CGE to brief business, labor and community leaders on the details of the agreement, Mr. Parasiuk said that the industrial benefits package has a value equal to $150 million when all of the economic multipliers are evaluated and included. "This agreement is the first of its kind ever to be reached in Manitoba. It has been signed in a spirit of co-operation . . . (and) will spur the growth of new manufacturing enterprises in Manitoba, bringing benefits for decades to come", Mr. Parasiuk said. Overall the agreement with CGE will create 2,300 person years of direct and indirect employment. Highlights of the industrial benefits package include: .Investment of a minimum of $10 million in long-term viable business operations in Manitoba. .Creation of at least 100 permanent new jobs in Manitoba's high technology industries. .Two research projects, to be funded at a level of $100,000 each, at the Manitoba High Voltage Direct Current Research Centre and the Manitoba Microelectronics Centre. .Sourcing of at least 15 per cent of the labor content of the manufacture of the Limestone generators and turbines. .A $2 million economic development program for Northern Native people between 1985 and 1994. -more- Manitoba Youth Moving Ahead International Youth Year 1985 MG-3179 -2- CGE LIMESTONE

Other head table speakers at the luncheon included Bill Blundell, Chairperson of the Board and Chief Executive Officer of CGE; Marc Eliesen, Chairperson of Manitoba Hydro and the Manitoba Energy Authority, and Industry, Trade and Technology Minister . Mr. Kostrya surveyed a sampling of provincial government programs which had been established to assist Manitoba firms and spoke in detail of the technology transfer component of the agreement with WE. He said that this component in particular will enhance the ability of Manitoba businesses to participate in Limestone and future similar projects in Manitoba and elsewhere. He explained that while CGE has agreed to a minimum of 15 per cent Manitoba content in the manufacture of Limestone turbines and generators, CGE is open to increasing this substantially. Increased Manitoba content, he said, hinges on the ability of Manitoba firms to perform as well as out-of-province companies with which WE could otherwise deal. Mr. Kostyra said that the technology transfer component of the agreement is designed to assist Manitoba firms in this way, and that his department will consider special funding to Manitoba firms participating in the technology transfer program. "When we talk about stable and steady growth in relation to Limestone, we are talking about laying a foundation for Manitoba's economic development that allows us to do many things. This industrial benefits package is part of that foundation (that) . . . will increase Manitoba content in Limestone and assist Manitoba business in achieving much more in the years ahead."

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Contact: Marc Eliesen, 945-7903.