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Cabinet seeks cash
No firm commitments for GNWT after meeting in Ottawa on energy projects and highways

Shane Magee
Northern News Services
Monday, December 5, 2016

SOMBA K'E/YELLOWKNIFE
Territorial cabinet ministers were Ottawa late last month with hat in hand seeking funds for energy and infrastructure projects, including highways and an expansion of the Taltson dam.

NNSL photo/graphic

Premier Bob McLeod, left, with Prime Minister Justin Trudeau in Ottawa on Nov. 22 where territorial ministers sought funds for various energy and transportation projects. - photo courtesy of the Prime Minister's Office

The suite of pitches also included solar panels in 15 diesel-powered communities, a wind farm near Inuvik, a transmission line to Fort Providence as well as familiar ones like the Mackenzie Valley highway and a portion of the all-season Slave Geologic Province highway.

The ministers left with no firm commitments, Premier Bob McLeod told reporters on a conference call Nov. 24. He suggested the next federal budget may have further news about the requests.

The lobbying effort saw the seven ministers along with staff head to the capital over five days to present to parliamentary committees, meet cabinet ministers and the prime minister.

"We wanted to improve federal awareness of the unique needs and circumstances of the Northwest Territories, and also we were promoting federal investment in selected Northwest Territories infrastructure projects," McLeod said on a conference call with reporters Nov. 24.

The discussions focused on climate change, energy and road infrastructure.

First on the list of energy priorities is an expansion of hydro power generation at the Taltson dam northeast of Fort Smith, which has a capacity of 18 megawatts and powers the town, Fort Resolution, Hay River and Enterprise.

Increasing it to 60 megawatts and building 200 kilometres of transmission line to Saskatchewan is projected to cost between $700 million and $995 million, a GNWT document states. The plan calls for using existing water reservoir, meaning no new flooding would be needed.

The transmission line would be used to sell excess power to the province to generate revenue. The document states that if a buyer is secured, construction could start in 2019 with power produced in 2022-23. The GNWT suggested the project could involve a partnership with an aboriginal government.

It's a smaller proposal than one floated in March in the legislative assembly by Louis Sebert, minister responsible for the Northwest Territories Power Corporation. He said the project could involve increasing the capacity to 200 megawatts with a transmission connection to the south at a cost between $500 million and $1 billion.

Another proposal floated in Ottawa was a transmission line running up Highway 3 to link Fort Providence to the South Slave grid, powering the community with hydro. It's described as the largest diesel community in the territory.

A two to four megawatt wind farm with 10 kilometre transmission link to Inuvik is also being considered.

Adding solar panels or variable speed generators in 15 diesel communities could cut greenhouse gas emissions by 2,600 tonnes per year.

The transmission link, solar and wind farm projects are together estimated to cost $140 million.

Beyond energy projects, the government reiterated the request for funds to build the Mackenzie Valley Highway. Background documents state the GNWT is hoping to at least start with a $70 million bridge over the Bear River. That portion already has the necessary permits but awaits funding commitments.

The territory also sought funds for a portion of the Slave Geological Province Access Corridor from Tibbitt Lake to Lockhart Lake.

McLeod said he discussed the federal government's plan to impose a price on carbon when he met the prime minister.

The territory has asked the federal government to give it special consideration when imposing the price in the coming years, though what that may involve has been murky.

The premier said he expressed concern that carbon pricing might unduly impact the cost of living in the NWT.

Mentioning a Nova Scotia agreement with the federal government on an extension to phase out the use of coal power, McLeod said the territory would be looking for more time to help develop its hydro potential and other infrastructure, and develop alternatives to diesel.

"I'm sure that we could work out a similar agreement and certainly that was reinforced by not only the ministers but by the prime minister," he said. "We're looking forward to working together in the best interests of the Northwest Territories and Canada on those things."

With the agreement, Nova Scotia also announced it would introduce a cap and trade system with the goal to reduce emissions.

– with files from Paul Bickford

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