Enhancing safety and economic growth in the north

Mar 04, 2025

Alberta’s government is increasing emergency route capacity while opening new economic opportunities in the north.

Moving people to safety during an emergency is a key priority. That’s why Alberta’s government is investing $311 million over three years in Budget 2025 to increase emergency route capacity for residents in northern Alberta. This will provide new and better options to escape dangerous situations, like wildfires, that require people to evacuate from their homes. If passed, Budget 2025 will improve access to and from northern cities and communities and unlock more economic opportunity, opening up the resource-rich north and building a stronger, freer Alberta.

“Wildfires underscore the need for more emergency egress routes. That’s why we are starting detailed design work to extend Highway 686 between Peerless Lake and Fort McMurray, creating a new emergency route for northern residents and a new east-west economic corridor in this resource-rich part of Alberta.”

Devin Dreeshen, Minister of Transportation and Economic Corridors

“These investments make it clear how important northern Alberta is to Alberta’s government. These infrastructure projects will boost safety and economic corridors, especially for people in the Fort McMurray and Lac La Biche region, and better connect Indigenous communities.”

Brian Jean, MLA for Fort McMurray-Lac la Biche

Budget 2025 includes detailed design work to extend Highway 686 between Peerless Lake and Fort McMurray, adding a new egress route and providing new capacity for the movement of energy products, heavy equipment and the delivery of goods and services to communities in the region. The new Highway 686 alignment will extend the highway by 218 kilometres, creating a new east-west highway link to connect northern Alberta communities and to support economic development across the region.

“For years, our Nation has fought for better road access, knowing how critical it is for our safety, mobility and economic future. The province’s enhanced funding for the Highway 686 corridor – especially for paving the road from Red Earth Creek all the way to Trout Lake – is a direct and positive response to our advocacy and our Nation’s needs. We recognize the steps Alberta has taken to work with us as meaningful partners and beneficiaries in this process. These investments have the potential to transform lives in Peerless Trout First Nation, and as this spirit of collaboration continues and strengthens, even greater opportunities can unfold for our people.”

Chief Gilbert Okemow, Peerless Trout First Nation

“With these latest investments in Highway 686, the Province of Alberta is demonstrating that major infrastructure projects can be developed in true partnership with First Nations. The province has heard our Nations’ voices and has been engaged early and meaningfully, and that is what will ensure this project benefits our communities, our people and future generations. We look forward to continuing to play a leadership role, knowing that this approach – one that respects our rights and prioritizes our leadership and direct involvement – will be key to its long-term success.”

Chief Ivan Sawan, Loon River First Nation

“The Highway 686 project is moving in the right direction because it is being shaped by First Nations, not just around us, but with us. The province has shown a willingness to work with our Nations in a way that prioritizes our involvement and our ability to directly benefit from the work ahead. That approach must continue, because when our people are full participants in infrastructure projects like this, we don’t just see roads being built – we see opportunities being created for generations to come.”

Chief Andy Alook, Bigstone Cree Nation

“Major projects in traditional territories must balance responsible development with respect for the land and the people who live with it. I appreciate the province’s collaborative commitment to work with First Nations to develop the Highway 686 corridor. This funding announcement is an important step forward. We expect to see tremendous benefits – not just in improved access but in long-term economic development opportunities for our Nations.”

Chief Raymond Powder, Fort McKay First Nation

“Investing in Highway 686 is a game-changer for Fort McMurray and the entire northern region. This project will enhance safety for our residents by improving emergency access and unlocking new economic opportunities. I’m proud to see our government taking real action to strengthen our communities and build a more connected and resilient northern Alberta.”

Tany Yao, MLA, Fort McMurray-Wood Buffalo

Budget 2025 also proposes funding over three years for engineering work for grade, base and paving of about 61.7 kilometres of the north-south segment of Highway 686 near Red Earth Creek and Peerless Lake in Peerless Trout First Nation, with additional funding over three years to pave more than 27 kilometres between Peerless Lake and Trout Lake.

If passed, Budget 2025 will also invest in a number of other highway projects that are underway or in the planning phase, including $101 million for twinning Highway 63, north of Fort McMurray, between Mildred Lake and the Peter Lougheed Bridge. This will increase emergency route capacity and support economic growth throughout northern Alberta. Detailed design work on the new bridge continues, as well as consultations with local Indigenous communities.

Additionally, $141 million over three years would be invested in safety upgrades to Highway 881, from just south of Fort McMurray to Lac La Biche. The improvements include 14 new passing lanes, an oversize load staging area and several intersection upgrades. Construction is expected to take three to four years and be completed by fall 2028.

Finally, $7 million over three years would be provided to plan an extension to Highway 956 from La Loche in Saskatchewan to Fort McMurray, providing an additional route to and from the Wood Buffalo region. Planning will commence in 2025 and is anticipated to be complete in the 2026-2027 fiscal year. Design is expected to take about three years to complete.

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Quick Facts

• Budget 2025 invests $8.5 billion over three years in Transportation and Economic Corridors’ Capital Plan, a $333.7 million increase compared with Budget 2024 that includes:
  • $2.6 billion in Capital Investment for planning, design and construction of roads and bridges.
  • $1.7 billion in Capital Maintenance and Renewal for highway and bridge rehabilitation projects.
  • $240.1 million for water management and flood.
  • $3.9 billion for Capital Grants to Municipalities.

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