Broadband internet service in Southern Manitoba is about to stretch even further.

Winkler based provider, Valley Fiber, is partnering with the Canada Infrastructure Bank (CIB) and DIF Capital Partners (DIF) on a $260 million fiber project it says will connect those in underserved rural communities.

According to the information provided in a joint news release, the Southern Manitoba Fiber Project will offer broadband speeds up to 1 gigabit per second, and involves 2,550 kilometres of fibreoptic cabling, connecting up to 49,000 households with dedicated fibre-to-the-home. It will also include last-mile infrastructure with underground fibre cables and networking equipment.

Under the terms of the agreement, the CIB and DIF will each invest $130 million in to the effort, while Valley Fiber will be responsible for all aspects of construction, installation, operations and maintenance of the new broadband service.

"I am honored to be working with such with an amazing team who shares our passion on bringing broadband to rural communities through dedicated active ethernet. Together, we are not only leveling the economic playing field but also bringing essential services to under-serviced Canadians in Manitoba," said Hank Wall, CEO, Valley Fiber Limited.

"Rolling out fiber broadband to remote locations in Canada will improve many facets of people’s everyday life," added Marko Kremer, Head of Americas, DIF Capital Partners. "DIF is excited to partner with the CIB and Valley Fiber on this transformational project. It will provide critical broadband access to many Canadians living in under-serviced regions and enable rural communities in Manitoba to participate in the digitalization of the global economy."

The deal is expected to be finalized this spring with construction to start soon after.

It's expected up to 400 jobs will be created during the construction phase, with an additional 50 permanent jobs within Valley Fiber.

According to the news release, this is the CIB’s first investment in broadband, first project in Manitoba and another example of the CIB quickly implementing its $10B Growth Plan by investing in new infrastructure.

"I am excited the CIB is making its first investment in broadband and first investment in Manitoba," said Ehren Cory, CEO Canada Infrastructure Bank. "Our $130 million investment will help Manitobans receive broadband service and create new economic opportunities, support public services like health and education and strengthen rural communities. There is a tremendous opportunity to expand broadband networks and the CIB looks forward to making many more investments which benefit Canadians."

The project is expected to be completed in 2024.