Although the funding was announced a few months ago, there were fears that the severe global economic tailspin -- and warnings from the provincial government that it will have to tighten its belt -- would prevent the money being delivered.

"The money has arrived," St. Catharines riding MPP and Ontario Transportation Minister Jim Bradley said to local mayors and dignitaries at regional headquarters in Thorold Wednesday. "Our government is delivering for Niagara's municipalities...to get our families working and our businesses prospering."

Niagara Falls riding MPP Kim Craitor said it "would have been very easy for our government to pull in the reins" and cancel the funding. "(But) we've done the right thing in tough economic times."

Regional Chairman Peter Partington said the money will give Niagara's economy an economic boost and will create jobs. The money, which comes from a budget surplus with the provincial government, is part of $1.1 billion going to Ontario municipalities.

Partington's priority with the $20 million Niagara's regional government will get is to invest in east-west transportation improvements between Highway 140 and the QEW, to promote development of what are known as gateway economic zones in the area from Port Colborne to Welland towards Fort Erie. Those concepts are still somewhat loosely defined.

"It will be the final link to unite Niagara as it should be," he said.

Ken Brothers, commissioner of public works for the region, said transportation improvements in that area could be a catalyst for the province to extend Highway 406 further south to East Main Street in Welland and eventually to Port Colborne.

The infrastructure money is on top of an announcement by the province last month that it was taking back the cost of court security and social assistance benefits that were dumped on Niagara's regional government back in the 1990s. Along with the regional funding St. Catharines received $6.3 million while Thorold received $874,548.