SOMBA K'E/YELLOWKNIFE - The legislative assembly will reconvene March 23 for an emergency sitting to discuss the territorial government's assumption of full financial responsibility for the Deh Cho Bridge project.

Finance Minister Michael Miltenberger said on Tuesday the government will now deal directly with lenders of the $165.4 million for the troubled bridge project, pending approval from MLAs.

"Basically it'll become a government project, fully and completely," Miltenberger said, adding the debt will be on the books and all future expenditures will be footed by the government.

The legislative assembly adjourned on March 4 for the regularly scheduled break until May 11, but Speaker Paul Delorey felt it was necessary for the assembly to reconvene earlier to deal with the Deh Cho Bridge.

"The government has communicated to me that the public interest requires that important financial matters be dealt with prior to the planned reconvening on May 11, 2010," Delorey stated in a press release issued on Monday.

Miltenberger will introduce a supplementary appropriation bill during the emergency session, which will authorize the GNWT to put the project in its books, and any further expenditures to be paid for by the government.

If the project is covered by the territorial government, the GNWT will come very close to the its allowable borrowing limit of $500 million – set by the federal government. However, Miltenberger confirmed late Tuesday afternoon that the federal government has committed to help the territory manage the debt limit.

"Finance Minister Jim Flaherty has committed to accommodate our ability to manage fiscal pressures within a borrowing limit, prompted by the short-term acquirements associated with the Deh Cho Bridge project," Miltenberger said, adding details of this commitment still need to be worked out.

The 2010-2011 budget main estimates show $189.6 million in guaranteed debt, with an additional $89.1 million due to a projected budget deficit, bringing the total debt to $278.8 million. Taking on the full responsibility for the $165.4-million in debt for the bridge will leave the government just $56 million under the limit.

"Over the course of the year, as we do our normal short term borrowing, we will eat into that," Miltenberger said of the borrowing capacity left at this point in time.

"For the most of this year we would be OK, but as we got to the end of the fiscal year we'd be reaching our debt limit. That's why this commitment from the federal government is so important to us."

Miltenberger said the federal commitment ensures that territorial government programs and services will not be affected.

"While this project is becoming a government project, we're going to be able to protect and make sure programs aren't negatively impacted or the capital plan isn't negatively impacted," he said.

Kam Lake MLA Dave Ramsay said Monday he will table a motion asking the auditor general of Canada to do a full review of the bridge project. He gave notice of the motion on March 4, the last day of the previous session.

"This government got into bed with a corporation that didn't have all the equity they were supposed to have, and obviously managed the project into the state it's in today, so there are a lot of questions," Ramsay said. Coming back for an emergency session, the first he's been a part of, will hopefully garner some answers and detail on the state of the project, he said.

"To me and the other regular members, having the discussion out in the public was the best option," said Ramsay. "They're going to be front and centre when it comes to answering questions. I hope regular members will take them to task on getting some answers."

Miltenberger said the government is committed to doing a full review of the project and will co-operate with the auditor general if the motion passes.