Regulatory approval process still unclear for Mackenzie Valley Highway

After decades of promises, the Mackenzie Valley Highway could begin construction as early as next year, but major regulatory and funding hurdles remain.

That was the central message at the Sahtu Readiness Conference in Norman Wells last week, where more than 70 delegates gathered to hear from representatives of the GNWT, federal Major Projects Office, Indigenous governments, regulators and economic development organizations.

The highway project proposes providing all-season access between Wrigley and the Sahtu communities of Norman Wells, Tulita and Fort Good Hope, ultimately connecting to Inuvik in the Beaufort Delta.

The Sahtu region currently relies heavily on short winter road and barge seasons to move supplies, which are becoming increasingly less reliable because of climate change.

Joshua Earls, president of the Norman Wells and District Chamber of Commerce, opened the conference by describing how a sudden temperature swing in 2019 turned the winter road into “absolute mush,” leaving six truckloads of supplies stranded.

In 2024, low water resulted in the cancellation of barges to Sahtu communities meaning businesses had to truck supplies back south and fly essential goods into Norman Wells.

Sahtu MLA Danny McNeely said an all-season road would bring “less stress to the people.”

Robert Jones, a vice president of the Major Projects Office assigned to the Mackenzie Valley Highway, told the conference the federal government wants the highway built within Prime Minister Mark Carney’s current term and is working toward securing the financing needed to make that possible.

The project must also complete an environmental assessment and receive regulatory approval.

The proposed Mackenzie Valley Highway is one of the major projects Carney’s government is considering designating as a project of natural interest.

Under the Build Canada Act, projects with such a designation are fast-tracked for federal approval.

The Mackenzie Valley Highway will still need to undergo an ongoing environmental assessment by the Mackenzie Valley Impact Review Board.

One project or two sections

Jones said the federal government is looking at the highway as a single project rather than separate construction phases, with the Wrigley-to-Norman Wells portion referred to as the southern section, and the Norman Wells-to-Inuvik portion as the northern section.

Jones said the federal Major Projects Office plans to complete federal permitting in about a year once the territorial regulatory process is complete.

GNWT officials told attendees the territorial government is working toward expanding the current environmental assessment to cover the entire highway from Wrigley to Inuvik, which would require the project to undergo a single assessment rather than separate environmental processes for two sections.

For years, the territorial environmental permitting process has focused on a proposal to construct the highway from Wrigley to Norman Wells. Once that was complete, the GNWT would move on to plans to extend the highway to Inuvik.

In a recent letter to the review board, McNeely expressed concern that the current two-phased review approach could mean waiting two to four years – or more – for regulators to approve the Norman Wells to Inuvik section of the highway.

At last week’s conference, McNeely told Cabin Radio there is work that could begin in preparation for construction on the main highway, like the Great Bear River Bridge.

McNeely said the bridge is outside the current environmental assessment and could therefore move ahead in the next year. He estimated the bridge would take roughly three years to build.

“That would give us immediate opportunities and commerce and business development and the creation of a disposable economy,” said McNeely

He also said some work on the highway had been planned around Norman Wells, including completing another seven kilometres south of the town. That work is dependent on regulatory permits.

The federal government has said planned initial work on the highway included relocation of the Oscar Creek Bridge, realignment of Christina Creek and realignment of Highway One.

Delegates stress Indigenous involvement

Indigenous governments reminded those in attendance that economic participation cannot come at the expense of Indigenous rights.

Bob Overvold of the Sahtu Secretariat Incorporated said Indigenous governments have seats on the Mackenzie Valley Highway Steering Committee and are being engaged directly by the GNWT and Major Projects Office.

The Mackenzie Valley Environmental Impact Review Board also includes membership from the Gwich’in Tribal Council, Sahtu Secretariat Incorporated, Tłı̨chǫ Government and Dehcho First Nations.

Overvold said Indigenous land corporations have a particularly important role because the highway will be built through Indigenous-owned lands.

“The only concern is that we have provisions in the land claim of how we could be involved and how the environment can be protected and how economic opportunities can be accessed,” Overvold told Cabin Radio

In June, Sahtu Secretariat Incorporated, Gwich’in Tribal Council and Pehdzéh Kı̨ First Nation signed an agreement to advance the Mackenzie Valley Highway.

Territorial government officials said traditional knowledge and community input are being sought on the proposed highway route and regulatory approach. The GNWT has held several public engagement sessions in communities along the proposed route this summer.

Preparing before the road arrives

While the proposed highway makes its way through regulatory approvals, the question now facing the Sahtu is whether its communities, businesses and governments will be ready to take advantage of the opportunities when construction finally arrives.

For delegates at the Sahtu Readiness Conference, the message was to not wait for construction to begin to start preparing.

Nazim Awan is an economic development officer for the Canadian Northern Economic Development Agency, also known as CanNor. He spoke to businesses and community representatives about CanNor programs that can support community readiness, consultation, training, and small and medium-sized businesses now that the highway seems to be a “real opportunity.”

GNWT officials said they are similarly developing community readiness plans focused on training and employment, business opportunities, social impacts and environmental monitoring.

The territorial government has opened a survey until August 30 for NWT businesses to provide input on how ready they feel for incoming federal investment.

The goal is to have local residents and businesses involved not only in construction of the Mackenzie Valley Highway, but in long-term maintenance and other economic activity created by the road, conference speakers said.

McNeely said construction of the highway could involve four to six work camps, meaning opportunities in equipment operation, camp maintenance, fuel, waste disposal, cooking, cleaning, safety and medical services, which could employ about 1,200 people at the peak of construction. McNeely estimated 200 to 300 jobs could go to Sahtu residents.

McNeely suggested people could be driving on the Mackenzie Valley Highway from Wrigley to Norman Wells in three years.

He said the highway will mean “happiness and prosperity” for the Sahtu region in terms of the economic, recreational and industry opportunities that would come with its construction.

“You can afford to hook up your U-haul and go down to Calgary and go to Edmonton where there’s cheap groceries and supply your own stock at you own pleasure,” said McNeely.