Nunavut Conservative MP Leona Aglukkaq announced the joint infrastructure spending at a news conference Tuesday in Iqaluit. (CBC)

The federal government is teaming up with the Nunavut government to spend almost $7 million on infrastructure projects such as fixing the sinking Arctic Winter Games Arena in Iqaluit.

Nunavut Conservative MP and federal Health Minister Leona Aglukkaq, and Nunavut Premier Eva Aariak announced the joint spending Tuesday in the territorial capital.

The federal, territorial and municipal governments will each spend $748,000 to repair the structure of the seven-year-old arena, which was shut down shortly it opened because the floor started sinking into the permafrost.

"The Arctic Winter Games complex will be fixed, finally, and will be able to be used for a number of events around hockey, speed-skating and so on," Aglukkaq said at Tuesday's announcement.

The funding arrangement was what the City of Iqaluit had wanted from the federal and territorial governments.

Mayor Elisapee Sheutiapik said the city has struggled over the past four years to come up with a fix for the arena, with different studies coming up with different solutions — and price tags.

"Realistically, unfortunately, we couldn't afford the permanent fix on our own," Sheutiapik said.

The federal and territorial governments will also spend up to $2.5 million each on the design and construction of a new hamlet office in the Nunavut community of Taloyoak.

Aglukkaq said the project will create jobs in the community and provide better office space for hamlet employees, who she said have had to cope with problems in the building.

"A few years ago, or a year ago, the hamlet employees in Taloyoak had to vacate the office building because of the mould," she said.

The federal government is adding $12 billion to the $33 billion it has already committed to infrastructure projects across the country. The spending is part of the federal infrastructure stimulus plan.

More funding announcements are expected Wednesday.