A memorandum of understanding has been signed with the Gwich'in, guaranteeing 50 per cent of government contracts in the settlement region will be awarded to Gwich'in businesses.

The five-year agreement will come into effect on April 1.

Jim Antoine, the minister of Resources, Wildlife and Economic Development, appeared at the Gwich'in Regional Chiefs meeting Thursday to make the announcement.

"I think it's a real big step for the Gwich'in because it gives us an inside look at how government does business," said Chief Charlie Furlong of the Aklavik Indian Band.

He said it is especially significant for a land claims group that has had so many disagreements with other land claims organizations in the past.

The announcement marked the first time the GNWT has made a commitment to involve aboriginal governments in its contract planning and development process.

But Furlong said it's not the first time the Gwich'in have taken a lead over other aboriginal groups.

He said the Gwich'in took the lead in breaking free from the original Metis-Dene claim because they "couldn't console their differences."

Furlong said they also challenged their regional claim and accomplished that within nine months.

"We've always taken a lead, or tried. We've been pretty progressive in trying to address some of the major issues that impact us.

"As an end result we've found a lot of times that what we address is quite helpful to other regions," he said.

Antoine said the agreement went before cabinet, but does "not necessarily" have to become legislation because "it's a contracting arrangement."

Inuvialuit communities such as Aklavik and Inuvik will receive a percentage of the contracts, but it depends on population.

The question of where the Inuvialuit fit in to the agreement presented some problems within the government bureaucracy, said Antoine.

"That's the problem that we hear. There are some concerns about it, we want to have a better understanding of how it's going to work," he said.

While agreeing there are still some details to be fine-tuned with regards to working out a formula, Antoine assured the Inuvialuit will not be left out in the cold.

Antoine said it's hoped the GNWT's agreement with the Gwich'in will be a model for other regions in the Northwest Territories.

"We'll see what happens," he said.

Furlong said the Gwich'in leaders will keep on top of things to ensure the terms of the agreement are fulfilled.

"We'll do the paperwork and make sure that we are all complying with the decisions we make," he said.