The city already budgeted its $8 million to upgrade its crumbling water treatment plant.
The provincial and federal governments each pitched an equal amount Friday.
"This is $16 million of revenue that we don't have to raise to complete a very vital part of any community," said Mayor Jim Scarrow.
The federal and provincial governments will each contribute their $8 million through the Building Canada Fund.
It was the second time the city applied for funding from the fund, which had been highly criticized previously for its tardy, sometimes non-existent flow of cash.
Scarrow said that's all in the past.
"It has been quite a week," said Scarrow. "First the Iogen announcement and now this."
The plant needs an additional building, new concrete and a new disinfection system, among other repairs.
Prince Albert Carlton MLA Darryl Hickie said the funding had been in the works since the application deadline at the start of May.
Hickie, who meets with Scarrow weekly, credited Prince Albert MP Randy Hoback as well for aiding the funding's accessibility.
He added that while governments are still injecting a lot of money into infrastructure, the province and city will soon catch up with curing the infrastructure deficit.
"When we stop having to fix broken sidewalks and can begin funding maintenance costs and preventative work - and not just the infrastructure deficit - then we'll know we are getting out of the deficit," said Hickie.
Hoback agreed.
"This infrastructure will contribute to our quality of life, as well as help to boost our regional economy now and for years to come," he said.
Director of public works Colin Innes said the city will have tenders out for the first $8 million of the project likely by next Saturday.
Administration will then have a better idea of an exact schedule, but work will be well underway this construction season, according to Innes.
The decrepit treatment plant had been ballyhooed in council chambers in the past.
The city was somewhat forced last year by provincial regulators to put $8 million into the project immediately, leading council to take out a $13 million loan in December, with the remaining $5 million headed to various other capital projects.
Some councillors disliked the loan, causing the borrowing's third reading to be delayed.
Friday's announcement could free up cash for other water-based capital spending, according to Innes, as much of the city's water system remains decades old.
Scarrow noted that city manager Robert Cotterill would bring a report to council to potentially propose taking on new capital projects.
Cotterill is also expected to bring a report forward by the end of the year discussing a complete overhaul of the city's water and sewer rate structures.
The provincial and federal governments also announced $375,000 for the Garden River Bridge.
The RM just east of Prince Albert will now have $500,000 in total to upgrade the bridge.
Money flows for plant
Millions provided for upgrade to water treatment plant
The city already budgeted its $8 million to upgrade its crumbling water treatment plant.
The provincial and federal governments each pitched an equal amount Friday.
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