Ottawa expects private cash to play role in northern infrastructure

The NWT’s MP says two expanded streams of infrastructure funding for the North must be bolstered by private investment to get things built.

At a Friday news conference, Rebecca Alty said a new $1-billion Arctic Infrastructure Fund can provide some direct cash for large projects that the territory is trying to get built, even though it won’t offer all the money needed.

More funding for the Canada Infrastructure Bank will allow more loans to help those projects along, the MP said, before adding: “The third part, I would say, would be the private investors.”

“When the government makes a commitment of funding and support, that draws private investment in.”

Speaking with Cabin Radio, Alty gave private investment a broad definition. That could range, she said, from utility firms like Naka Power to Indigenous development corporations attached to First Nations.

She described Ottawa’s vision for large northern projects as “crowdsourcing” multiple sets of funding.

“If Indigenous business development corporations are looking to buy equity into a utility, that could be an option, along with the Canada Infrastructure Bank and Arctic Infrastructure Fund.”

The work now, the MP added, is “bringing it all together to get the projects completed.”

The three main projects from the NWT government’s perspective are the Mackenzie Valley Highway, Arctic Economic and Security Corridor, and Taltson hydro expansion.

Asked if she expected to deliver significant progress on any of those over the next year, Alty said: “For sure. And I do think this Arctic Infrastructure Fund, the Canada Infrastructure Bank – these funding pots, all together, will be what these projects need to get across the finish line.”

Alty, who is also the minister of Crown-Indigenous relations, appeared at Yellowknife Airport to promote elements of the Liberal budget that narrowly passed earlier this week.

The Arctic Infrastructure Fund cash, for example, will be spread over four years – in other words, $250 million per year spread across the territories.

Ottawa says the money will support so-called dual-use infrastructure, meaning projects related to airports, highways and the like that can be used by communities and by the military.

In a Friday news release, the federal government said it will spend the money on “transportation projects that reinforce Canada’s sovereignty, enable regional economic development, and connect northern and Indigenous communities.”

So far, there’s no detail available about which projects will be funded or how governments – like the GNWT or Indigenous governments – apply for a share of it. A selection process will be made public in the weeks to come, Alty said, and she had no information about the timeline by which projects could start to receive cash.

Speaking earlier this month when the fund was initially proposed in the budget, NWT finance minister Caroline Wawzonek said $1 billion over four years felt to her like “not a lot” for the Arctic.

But Wawzonek noted the Arctic was getting “its own specific carve-out” for the first time since she became a minister in 2019, which she described as a positive step.

She also suggested the NWT government was not currently in a position to spend billions of dollars in one go, and the amounts mentioned regarding the new fund were “more than plenty” for at least the coming fiscal year.

Dene Nation fears NWT’s ‘exclusion’

Alty’s promotion of the Arctic Infrastructure Fund is part of a broader conversation about federal investment in the northern economy.

Friday’s news conference came after the NWT was overlooked in two rounds of Major Projects Office announcements.

The office, newly created by Prime Minister Mark Carney, is designed to advance projects that the federal government thinks will be economically transformative.

So far, none of the NWT’s big three are funded. Each is likely to cost more than $1 billion.

The proposed Mackenzie Valley Highway would build an all-season road through the Dehcho to the Sahtu, the Arctic Economic and Security Corridor would involve a highway from the North Slave to the Arctic coast in Nunavut, and the expansion of the South Slave’s Taltson hydro plant would connect it to Yellowknife and the North Slave.

Carney has identified the Arctic Economic and Security Corridor on a second-tier list of projects that are interesting but need more work.

Some work is taking place – backers are deciding on a route for the road, and the Yellowknives Dene First Nation and Tłı̨chǫ Government will sign a memorandum of understanding on Monday next week to jointly advance the project. Alty said on Friday that “work continues” on that file.

Beyond that, the NWT hasn’t been mentioned in connection with the Major Projects Office.

In a news release this week, Dene National Chief George Mackenzie said the NWT was “being excluded from the major project discussions.”

The territory also has no representation on an Indigenous advisory council set up to assist the Major Projects Office.

“The federal government has stated that these major projects are crucial for creating jobs, building infrastructure, and fostering opportunities for Indigenous peoples across Canada,” the Dene Nation stated this week.

“However, the reality we face is right now a lack of tangible developments that could benefit our people. The Dene Nation, representing a significant portion of the Northwest Territories’ population, has been sidelined in discussions that directly impact our lands and communities.”

Alty said extra funding being provided to the federally operated Canada Infrastructure Bank, alongside the Arctic Infrastructure Fund, may help the NWT’s big-ticket projects.

She also said the Taltson hydro expansion could ultimately be considered part of the Arctic Economic and Security Corridor – turning two of the NWT’s projects into one, a prospect that hasn’t otherwise received any real public discussion.

Commerce groups hail a ‘turning point’

Not all groups in the North share the Dene Nation’s disappointment in the federal government’s overall approach.

In a separate news release this week, three business groups – the Yellowknife Chamber of Commerce, NWT and Nunavut Construction Association, and NWT Chamber of Commerce – said Ottawa was making “one of the most significant commitments to northern development in decades” in its budget.

The groups called on the GNWT to capitalize on that by moving quickly to secure Arctic Infrastructure Fund cash and launching an “open for business” brand that can attract global investors.

“This moment is a turning point. The North’s future depends on how quickly we adapt and act. We must build on the success and legacy of our diamond industry and advance a new phase of collaboration, innovation, and infrastructure readiness,” the groups wrote.

“Federal attention is here today – We need to move forward with determination, innovation, and a shared sense of urgency to secure long-term prosperity for future generations.”

The groups used the site of Alty’s news conference, Yellowknife Airport, as an example. They said the GNWT should prioritize approving a new airport land use plan so federal dollars can drive an airport expansion.

“Airports are proven economic engines, and the YZF airport is well positioned to anchor this next stage of northern development,” they wrote.