Yellowknife (Feb 28/05) - As much as $1.6 billion will be invested in the Northwest Territories throughout 2005, a leap of $432.9 million from last year.

In percentage terms, growth in overall capital expenditures is expected to top 36 per cent in the Northwest Territories; leading the nation in growth, Statistics Canada stated in a release issued Wednesday.

Premier Joe Handley said the growth in spending in the Northwest Territories will continue for some time.

De Beers' Snap Lake Project as well as BHP Billiton's underground project at Ekati and Diavik's second dike and underground decline are all propelling 2005 growth in project spending.

But it doesn't stop there, said the premier, for once immediate investment by De Beers, BHP Billiton and Diavik taper off, investment by the pipeline producers will increase.

"Once the pipeline is under construction we will see a huge jump. I would expect to see capital investment in the North by the oil and gas companies as early as the 2007-2008 winter season." Handley said.

"And the bulk of it being in the 2008-2009 winter season. That will be a four or five billion increase over the previous year and that will put us right out of the ballpark," he said.

Gilbert Paquette, a unit head with Statistics Canada confirmed the increase in spending is being driven by the mining and oil and gas sectors.

"The mining and oil and gas extraction sectors are propelling the growth, up from $757.8 million last year to $1.18 billion in 2005," said Paquette. The Statistics Canada release shows mining and oil and gas sectors are now more than 10 times larger, in capital spending terms, than government itself.

Overall public spending by the territorial, federal and municipal government is pegged at $111.6 million by Statistics Canada, $94.6 million of which is slated for construction projects and another $17.1 million being dedicated to machinery acquisition.

Statistics Canada expects the territorial government's 2005 calender year capital expenditures are intended to be $76.5 million.

However, the main estimates tabled in the 2005-2006 territorial budget state overall capital expenditures are expected to come in at $115.8 million.

"It's not an error, it's based on what you define as government. The public and private investment intentions look at general government and the main estimates look at a broader definition of government which includes government-business enterprises so it's just a definition issue," said Angelo Cocco, an economic statistician with the NWT Bureau of Statistics.