Paul Bickford
Northern News Services
On Nov. 15, the territorial government (GNWT) and the Fort Providence Combined Council Alliance signed a memorandum of intent (MOI) to construct the Deh Cho Bridge.
-Fort Providence groups initiated feasibility study in July 2000. -The bridge Alliance submitted a formal proposal to the territorial government in February 2002. -Total cost of bridge "not to exceed $55 million." -Commercial vehicles would pay a toll equivalent to $5 to $6 per tonne. -GNWT's annual $1.4 million contribution would be adjusted according to inflation. -Yellowknife Direct Charge Co-op estimates a bridge could save each of its member families about $100 per year in freight costs. -RTL Robinson Enterprises estimates that the toll costs would be offset by decreased costs. Source: Ft. Providence-Deh Cho Bridge Fact Sheet |
The MOI outlines the conditions and steps required for both parties to reach agreement on design, financing, construction and operation of the $55-million structure. It also commits the parties to conclude formal negotiations by next fall.
If a final deal is reached, construction of the kilometre-long bridge could begin by the fall of 2003, with completion by the summer of 2005.
The alliance will be required to obtain all necessary environmental permits, and arrange equity and debt financing.
Transportation Minister Joe Handley, who signed the MOI on behalf of the GNWT, said the private-public partnership model makes good business sense.
"We as a government just don't have $55-$56 million to put into a bridge right now. We've got too many other pressures. This allows us to do it."
The minister added various amounts of funding will come from the GNWT, the alliance, private investors and bank loans, and, hopefully, from the federal government.
"But the bulk of the money is going to come through a toll on heavy commercial traffic. We don't know the exact amount of that, because that will depend on how much other money is raised."
So far, the GNWT has invested about $250,000 and is prepared to provide up to another $250,000 for engineering and environmental work. It is also prepared to provide a loan guarantee of $2 million.
Handley said a bridge would end the isolation of the North Slave for up to two months each year. For periods in the spring and fall, ice conditions prevent the river from being crossed by either ferry or ice road.
Premier Stephen Kakfwi attended the MOI signing for what he called a significant and exciting project.
"It is going to have a profound impact on our economy and the way we do business day to day in the future," Kakfwi said.
Chief Sam Gargan of the Deh Gah Got'ie First Nation expressed confidence the local bridge committee can meet the MOI's conditions.
Gargan believes that a year from now there will be a sod-turning ceremony by the current ferry landing.
Public consultation needed
Albert J. Lafferty, president of the Fort Providence Metis Council, said public consultation is now the most important task.
"We need to ensure that people understand the proposal and know that it's a good deal for them."
The GNWT will pay the alliance the proceeds of the bridge toll on commercial trucks and the amount saved by eliminating current ferry and ice bridge operations -- about $1.4 million annually. The money will pay for bridge maintenance and debt servicing, while providing a return on equity to the alliance.
The alliance consists of the Hamlet of Fort Providence, the Metis Council and the Deh Gah Got'ie First Nation.
The bridge will be paid for in 35 years and then transferred to the GNWT.