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INUVIK - Environment Minister Jim Prentice announced on Monday that the federal government is offering funding for infrastructure and costs incurred by regulatory delays to the companies behind the Mackenzie Gas Project.

The companies include Imperial Oil, Shell Canada, Exxon Mobil, and the Aboriginal Pipeline Group among others.

Exact details about the money and conditions are not yet known. Local business owner Tom Zubko said the announcement of the federal funding could reap more benefits for the Northern communities affected by the pipeline development.

"There are plenty of long-term benefits for the Territories," said Zubko.

In his opinion, the federal backing of the project could mean that roads and docks could be built in the connecting communities up the Mackenzie River.

Zubko added since nothing is set in stone or signed yet, it's all just speculation.

"I think everyone involved has been expecting some sort of arrangement with the federal government," he said.

The announcement had Northern leaders and Mackenzie gas pipeline stakeholders breathing a sigh of relief after the Joint Review Panel's (JRP) December's announcement that it would need another year to complete its report.

Mackenzie Gas Project spokesperson Pius Rolheiser said he could not comment on specific details of the money but said the announcement was positive.

"We look forward to a continuing constructive dialogue with the federal government on a commercial and fiscal structure for the project that will enable the project to move forward," he said.

Rolheiser said project proponents have been in discussions with the federal government for some time.

He said Imperial Oil remains committed to the project.

Western Arctic MP Dennis Bevington criticized the announcement, calling it a "flip-flop" by the federal government. Bevington produced quotes made by Jim Prentice in 2007 where he said the Mackenzie Gas Project should be completed by the private sector.

Bevington said he supports the pipeline but is concerned about how the Harper government is supporting the project.

"To just give an open-ended chequing account with not any guarantees as to what taxpayers' money is going for is just irresponsible," he said.

Fred Carmichael, former Gwich'in Tribal Council president and chair of the Aboriginal Pipeline Group, said the offer was positive news in tough economic times.

"It makes the pipeline more certain and to me it's good news because the economic situation in Canada is pretty bad right now and the North is no different," he said.

The news of the Joint Review Panel's (JRP) December 2009 deadline caused Norman Wells mayor Peter Guther to lose hope in the project. He said this news has renewed his faith.

"I basically went into a deep funk again when I heard the JRP was going to take another year or another decade or whatever it was before they could produce a report," said Guther.

Guther said he wished Prentice had tied the money to the upcoming budget, rather than announcing it at a press conference.

"To me I would have felt a lot more comfortable if it was inside the budget because then there would have been a kind of lock on it."

Inuvialuit Regional Corporation chair and CEO Nellie Cournoyea was cautiously optimistic about the news.

"We're happy about a deal finally being on the table so we can deliberate but we haven't done a total evaluation yet," she said.

- with files from Dez Loreen