Donna Huffman
Northern News Services

NNSL (Sep 20/99) - The future is looking bright for the construction industry in the Western Arctic.

Bill Aho, president of the NWT Construction Association, sees potential for large contracts in diamond exploration and mining, and oil and gas development throughout the Arctic.

He is impressed with the potential for both the Diavik mine contracts and the prospect of future oil and gas exploration in the Liard Valley and elsewhere.

"Inuvik's been very busy this year in its conversion from oil to gas and with their new pipeline. One of the ministers has even indicated that the pipeline could go into other communities. It's been very encouraging in the area."

The prospect of the Diavik mine project is also a major factor in this enthusiasm. Aho is very impressed with Diavik's pro-active approach to involving Northern businesses in the bids for contracts.

"They brought their whole group together this summer and proposed what they were going to do and outlined the contracts and what potential there is for Northern business. They provided the industry with registration forms to give everyone an opportunity and bundled contracts into a manageable size that Northern businesses could handle. So when their project goes ahead there will be good opportunities for us."

Despite the need for housing across the Western Arctic, the GNWT is not doing much in capital development this year and from what Aho has heard, there will be further cuts in that area.

Chester Spry, the new executive director of the NWT Construction Association, agrees.

"The thing that they're (GNWT) up against is deficits and there's just no way they can keep the construction industry going. They used to be the fuel for the engine and that just can't happen anymore."

The GNWT, in its 1999-2000 main estimates, has budgeted $86.3 million for capital expenditures. Prior to division, $179.5 million was budgeted in fiscal 1998-1999. The $179.5 figure represents capital spending for both territories.

The private sector is fuelling the positive environment for construction companies now but Aho worries whether that will continue.

"Currently, from my experience, everybody is reasonably busy right now heading into winter, busy finishing up projects and getting winterized. But how that will translate into future opportunities remains to be seen."

The recent division of the territories has also caused a concern for the association.

"We used to work both east and west and it's not occurring as much any more. The Eastern Arctic appears to have closed itself up with not a lot of opportunity for western contracts," Aho said.

Spry agrees that Nunavut is promoting its own interests but isn't surprised. He suggests that the same thing happens in the West.

"They (Nunavut) have their own business incentive policy and I suspect that they will try to hire local companies the same as we do here."

Spry is more concerned that both federal and territorial governments may hinder private development by not acting in a timely fashion.

"The association would never support indiscriminate development in the North but (an answer from the Minister of the Environment) has got to be yes or no. Tell them quickly before they get scared off."

Spry is also concerned that the silent majority is not doing enough to support development in the North.

"It may not happen if we don't get out there and tell it to go on. Obviously, we have to be cautious but we do need development in the North and you can't have it with no impact."

Despite his concerns Spry is cautiously optimistic for the future of the construction industry in the NWT and is settling comfortably into his new position as executive director. He recently took over from Richard Bushey.

In Inuvik, construction companies will be busy with several large construction projects to be completed within the next two years. All three of the large developments are being constructed under the P3 project, a public and private partnership initiated in 1997.

Brian Lemax, with Public Works and Services said, "Rather than the government coming up with the capital to invest in these large public projects, this new development approach asks for proposals from developers to provide a facility and then lease it back to the government."

It appears that the strategy is a win-win approach, especially for Inuvik. Local contractors and design firms are busy bidding on projects while the government can afford to choose from the best designs being offered.

One of the first large projects under way is the building of a new hospital. The design process took a little under four months to complete and development bids are being accepted until the end of January. It is hoped that construction will begin in the spring.

Aurora College in Inuvik is getting a completely new building with over 3,000 square metres to house both residential units and academic facilities. Grollier Hall is in the process of being demolished and the new building will sit on the same site.

Finally, a new correctional facility for young female offenders is just going into the design phase now. Proposals for designs are being tendered until the second week of October and development of the project will follow shortly after that.

Yellowknife is also seeing some investment in public facilities. According to Dave Jones, a planner with the Yk Planning and Lands Department, the extensive renovations of Sir John Franklin high school along with the complete replacement of St. Patrick high school will mean an investment of about $23.5 million over the next year.

Jones is also confident that the new territorial jail, with an estimated cost of $30 million, will be a considerable boon to the local construction industry.