Iqaluit (Feb 17/03) - City council will have to do the best it can when it comes to planning expensive capital works projects.

That's because the Department of Indian and Northern Affairs rejected a request for $180,000 to pay for a consultant to help the city plan capital projects.

"We were very surprised and disappointed," said Rick Butler, Iqaluit's chief administrator.

The city wanted to hire a consultant, EPCOR, to help with the administration of the five-year, $50 million capital and operating plan. Most of the money will go to water and sewer work.

Butler said the consultant would have advised council how to spend the money carefully and efficiently.

It would also be responsible for assessing risk.

The partnership between the city and the consultant is part of what Butler called a new way for municipalities to do business -- a P3, or public-private-partnership agreement.

Although the funding problem will not affect the five-year plan, it will mean the city needs to regroup and rethink.

"We're still hoping the minister will reconsider this one," said Butler.

The requested funding was to come from the Northern Affairs Program Contributions, which is used to assist Northern communities in developing a knowledge-based economy.

When the city applied for the funds, council thought their project -- trying to hire a consultant to help them spend money wisely -- fit the criteria.

Mayor John Matthews has written to DIAND Minister Robert Nault, asking that the funding request be reconsidered. The minister's office was not available for comment before press time.