02/18/2014 03:26 EST | Updated 04/20/2014 05:59 EDT

Manitoba government sets out $100M in First Nations flood fix

WINNIPEG - The Manitoba and federal governments say progress is being made toward a settlement package for some flooded First Nations communities.

The province has announced it has set aside $100 million this year as part of negotiations with four reserves that were devastated by flooding in 2011.

The money is aimed at matching federal spending announced Friday.

More than 1,600 people are still out of homes ravaged by flooding in Lake St. Martin, Little Saskatchewan, Dauphin River and Pinaymootang.

The province says it doesn't know what the final price tag will be for aid that is to include new land, new housing and compensation for the operation of a dam, which the First Nations blame for the disaster.

The four bands filed a billion-dollar lawsuit in 2012 over the damage, and Aboriginal Affairs Minister Eric Robinson says the lawsuit does not have to be dropped as part of the negotiations.