Preliminary cost of Fort McMurray fire estimated at $615 million
Newly announced $300M from Ottawa will help cover costs of initial response
The initial cost for the province to fight last month's massive fire in Fort McMurray was $615 million, Alberta Municipal Affairs Minister Danielle Larivee revealed for the first time on Friday.
It was the first time the province has attached any specific amount to fire fighting and evacuation costs.
The figure does not include the loss of revenue from the break in oil sands production, loss of royalty revenue and the cost of the cleanup. It also doesn't include the cost of property loss, which is expected to be in the billions.
"That's an estimate," Larivee said about the $615 million figure. "There will likely be some unexpected expenses that come up along the way."
The province may seek additional federal help for long-term recovery, she added.
Federal Public Safety Minister Ralph Goodale , Veterans Affairs Minister Kent Hehr and federal Infrastructure Minister Amarjeet Sohi joined Larivee at an Edmonton news conference to announce Ottawa will be providing an advance payment of $300 million to Alberta in early July.
The funding will be coming through the Disaster Financial Assistance Arrangements program.
Although the funding is only half the initial costs incurred by the province, Larivee said the quick turnaround is much appreciated.
"Getting this money, this quickly, and an advance on this is actually exceptional," she said.
Ottawa will match the more than $90 million donated to the Canadian Red Cross to help fire victims. The government of Alberta is matching the more than $30 million in donations made within the province.
The federal government is moving quickly to make federal funds available for Alberta to alleviate the financial burden of recovery from the northern wildfires, said Goodale.
In early May, a wildfire dubbed "the beast" tore through Fort McMurray, forcing the evacuation of 90,000 people. About 2,400 structures were destroyed. Thousands more were damaged.
Since early June, some residents have been returning to their homes. But the entry date for those who lived in the hardest hit areas is up in the air.
"Alberta appreciates the support of our federal government and all Canadians as we continue to deal with a difficult situation," said Larivee.
The provincial and federal governments will be working together to implement a Canadian Wildfire Strategy and to strengthen fire-prevention programs.