Thorunn Howatt
Northern News Services

Yellowknife (Nov 13/02) - The federal government says it will not help finance a proposed Mackenzie Valley pipeline through a loan guarantee to the Aboriginal Pipeline Group (APG).

Herb Dhaliwal

"We do not, as a rule, fund pipelines either through loan guarantees or other means," Natural Resources Minister Herb Dhaliwal told The Canadian Press Monday.

Dhaliwal's comment means the APG will have to try and get the $70 million it needs to finance its portion of pipeline-related research from the private sector.

"There are many ways of dealing with financing," said Dhaliwal.

The APG, a contingent up aboriginal from regions throughout the NWT, wants one-third ownership of a proposed $4 billion natural gas pipeline through the Mackenzie Valley.

It asked the federal government for $70 million in loan guarantees to cover its share of ongoing community consultations, environmental and engineering research.

Last month, the federal government appointed former National Energy Board chair Roland Priddle to negotiate pipeline aspects with the APG. Now it looks like Priddle's job is to help the aboriginals find cash from other sources.

Priddle was in Inuvik this week meeting with new APG chair Fred Carmichael.

Carmichael and the APG haven't given up on the government though, noting Dhaliwal used the term "as a rule."

"I don't think that's a 'No,'" said Carmichael who was clearly surprised by Dhaliwal's comments. "It is not your average pipeline. We believe this project qualifies as one of those instances where the government searches circumstances justifying loan guarantees."

Carmichael said an October message to the APG from the prime minister ensured aboriginal pipeline ownership.

"A letter to the APG has committed the federal government to ensuring the pipeline provides long-term benefits to the aboriginal people and we are counting on the federal government to fulfil this pledge," said Carmichael.

Imperial Oil Resources is leading the Mackenzie Delta Producers' Group toward building the Mackenzie Valley pipeline. It is overdue in submitting a preliminary information package on the project to the National Energy Board.

It wants to have gas flowing down the line within four years, but the consortium wants aboriginal consent before it goes ahead with the project.