SOMBA K'E/YELLOWKNIFE - The Con Mine community energy project has been assured $14.1 million from the federal government, but it can only be used for the mine energy portion of the project - the last part to be built.

"The grant is directly targeted toward the mine energy development portion," said Bob Long, senior administrative officer for the city, at the Chamber of Commerce lunch Tuesday afternoon.

With the city still unsure of the temperature of the water beneath the Con Mine, the mine energy system is the most uncertain aspect of the project.

"If there was anything unknown in any part of the project it's the mine energy piece and you can see that if it costs us $18 million and we're going to get a $14 million grant, that's a rational business decision," Long told members of the business community.

The mine energy system would be implemented in 2016, after the biomass boilers have already been installed. The city is holding a referendum March 14 to ask residents for permission to borrow up to $49 million for the project.

Long said the city needs a positive vote in order to receive the $14.1 million grant from the federal government because the feds want proof the city has the funds necessary to move forward.

Even if residents vote in favour of the city moving ahead with the project, it doesn't mean it will borrow $49 million or any money at all. It will just give the city the option to continue moving forward.

Until last week, the public didn't know how much the city would be receiving from the federal government, although the city has known the amount since January 2010.

Long said the city was asked not to share the $14.1 million figure until after the federal government had made a formal announcement.

Until last week, the public only knew the city would receive between $10 and $20 million.

The concrete number was first released by Long last week in a committee meeting when he noted it was on the Clean Energy Fund website.

Yellowknifer, with assistance from Mayor Gord Van Tighem, was unable to find a press release that confirms the funding in any more specificity than the earlier mentioned $10 to $20 million.

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