Thorunn Howatt
Northern News Services

Yellowknife (Oct 01/01) - The government of the Northwest Territories has rejected a proposal to pave the NWT's Highway 3 in only two years and remove the need for a toll.

Northern News Services has obtained a copy of the Yellowknives Dene First Nation and the Dogrib Rae band joint proposal to take over construction of the Rae to Yellowknife highway.

The territorial government has been pushing to pay for highways by charging a road toll to commercial users.

The Sept. 7 response to the proposal said, "As there is a well-established competitive construction industry within the NWT I am unable to take your proposal forward to cabinet for approval.

"As your initiative has taken you this far, I would hope to see your competitive bids for the upcoming public tenders."

The Dogrib/Yellowknives proposal estimates the cost to the NWT Department of Transportation at $4.1 million, within its current budget. It suggests that road tolls on Highway 3 could be avoided.

Financing the venture

The bands would arrange for private sector financing and hire a general contractor for the project. They suggest the department of highways would pay them already budgeted amounts during the construction period and the balance owing over the next six years. The government would retain ownership of the road.

"There is an estimated benefit of $301,000 to the government of the Northwest Territories and a positive benefit of $2.8 million to the NWT," says the proposal, addressed to Minister of Transportation Vince Steen.

Chief operating operator of the Deton'Cho Corporation, Darrell Beaulieu, said in the proposal that the government would see lower costs than it has currently planned for. The project would also help build business capacity of the bands and provide training opportunities.

"This project has the advantage of addressing the need for capital for road investment without increasing the debt load of the government," reported Beaulieu's letter.

Neither Beaulieu nor a representative from the Department of Transportation would comment on the letters.

The GNWT estimates it will save about $2,340 per kilometre every year in reduced maintenance costs if the highway is paved. The Dogrib Yellowknife proposal translates into $1.7 million in reduced maintenance costs to the Department of Transportation.

The required loan would be $28 million. Interest of $11.2 million would be repaid over six years.