The new bridge would be downriver from the current Ambassador Bridge border crossing, shown here. The bridge will connect Windsor, Ont., with Detroit. (Paul Sancya/Associated Press)

Canada has offered to contribute up to $550 million US to help the cash-strapped state of Michigan pay for a new bridge crossing the Detroit River between Windsor, Ont., and Detroit.

Federal Transport Minister John Baird made the offer in a letter Thursday to Michigan Gov. Jennifer Granholm.

Baird said Canada cannot afford any further delay in construction of the Detroit River International Crossing.

The cash from Canada will help cover the costs for Michigan to get started with the project on its side of the border, including an interchange with Interstate 75, the toll plaza and buying up land needed to build the U.S. Customs plaza.

"This is the most, not one of the most, this is the most important infrastructure project across Canada today and is one of the most important in our history," Baird said.

"The time to get moving is now. The time to create jobs is now."

Canada to be repaid in toll money

Baird said the $550 million US would be repaid to Canada, in full, by tolls collected at the bridge.

Baird said the $5-billion project connecting Highway 401 with I-75 risked being held up by political obstacles. The Michigan standing committee on transportation of Michigan's house of representatives gave the project a green light on Thursday morning.

'If you wanted to make this thing happen this was the only way we could do it.'—John Baird, Transport Minister

"This is good news," said Baird.

"But we're still waiting for the full Michigan house and full Michigan senate to vote, which is scheduled to occur in the coming weeks."

Michigan will only receive Canadian funding when the Michigan state legislature fully adopts the DRIC project, a decision which is expected to happen by June 1.

Baird said discussions between Canada's ambassador to the U.S. Gary Doer and Michigan's governor indicated the only way the legislation would pass through the house was for Canada to help out financially.

"If you wanted to make this thing happen, this was the only way we could do it," Baird said.

2014 target for opening bridge

The bridge will be jointly owned by the Canadian and Michigan governments.

Baird said the construction of the bridge will create thousands of jobs in southwestern Ontario, and Windsor in particular, the city with the highest unemployment rate in the country. The bridge is expected to be completed in 2014.

Preliminary construction has already begun on an access road leading up to the new border crossing.

Work on the $1.8 billion Windsor-Essex Parkway is expected to begin in earnest in the fall of 2011 and create approximately 12,000 jobs.