Feds commit to partly fund road to Whati
Link to community continuing through environmental assessment
Shane Magee
Northern News Services
Monday, January 16, 2017
WHATI/LAC LA MARTRE
The federal government plans to cover 25 per cent of the cost to build an all-season road to Whati through a public-private partnership.
NWT MP Michael McLeod announced the federal government will fund 25 per cent of the cost to build an all-season road to Whati during a ceremony at the Johnny Nitsiza Cultural Centre in the community on Jan. 11. - Shane Magee/NNSL photo |
Whati has sought for three decades to replace a winter road typically only open three months per year with a road open to vehicles year-round.
The federal funds hinge on the project clearing an environmental assessment and inclusion in the territorial budget.
Federal, territorial and Tlicho leaders were in Whati on Jan. 11 to make the announcement at the Johnny Nitsiza Cultural Centre in front of three-dozen people, many recording the speeches on cell phones.
"This is infrastructure that will make a real difference in the life of Whati residents," Northwest Territories MP Michael McLeod said.
Tlicho Grand Chief Eddie Erasmus said the community will benefit from cheaper food, easier travel as well as opening up economic opportunities. He said the Tlicho and Whati Community Governments are preparing people to have the skills to work on building the road.
"We have companies ready to build and maintain the road," he said. "We are ready to put our people to work."
A public-private partnership (or P3) means a company, or group of companies, will be selected through a competitive process as the proponent to finance and build the road. A 25-year maintenance contract is also expected to be awarded as an enticement to the private sector to put up the initial funding, which will be paid off over the long-term by the GNWT.
Premier Bob McLeod said there will likely be criteria used to select the bidder that could include requiring a certain number of local employees to work on the project and use of local contractors.
The cost of the two-lane gravel roadway has been pegged at $150 million. The premier wouldn't say last week if the figure is still accurate, citing the planned bidding process. The premier expects the territory will pay for the remaining 75 per cent of the cost.
Transportation Minister Wally Schumann said he'd like to see work begin next winter pending environmental approval and the bidding process, with construction over four years.
"In the P3 process, all the onus, all the risk, is put on the proponent so they're going to want to get that thing done as soon as possible," Schumann said.
The two-lane gravel all-season road would branch off Highway 3 between Fort Providence and Behchoko at kilometre marker 197. It would require building four new bridges and installing a large arched culvert to cross waterways along its 97-kilometre route.
The project was sent for environmental assessment by the Mackenzie Valley Environmental Impact Review Board in July to examine impacts that may result from changes to access to the community, on social services, caribou and uncertainty about mitigation measures. The GNWT hopes the review can be completed in June or July this year.
Not all MLAs have expressed support. Yellowknife Centre MLA Julie Green has repeatedly questioned the government's focus on highway spending and suggested money would be better used on housing and social programs.
"It's time to rethink our investments and choose projects that have better and longer-lasting returns for our people," Green stated in a guest column in this edition of News/North.
The premier said there needs to be a balanced approach.
"I think that each has its place and if we spend all of our money on social programs, we wouldn't have any infrastructure and vice versa. I think that it's a balance, it's fine art of budget making," Bob McLeod said.
Two surveys of residents have found about 80 per cent support the road, according a 2014 report by Alistair MacDonald for the Tlicho Government.
Marlene Wedawin, a career development officer with the Tlicho Government, sat at the back of the hall and called it an exciting development. Through her job she sees the limited employment opportunities in the community. She said they're trying to get people ready for road construction jobs.
There could be "hundreds" of construction-related jobs over several years, with about 10 to 12 people hired for maintenance work, said deputy minister of Transportation Russell Neudorf.
Wedawin's excitement comes with hesitation.
"(I'm) kind of scared in terms of substance abuse for our young people," she said.
Whati is a dry community, meaning alcohol is prohibited. The ban hasn't kept alcohol sold by bootleggers out, though.
The social impacts of the road are part of the environmental assessment by the review board, which could put forward recommendations.
"The project proponents will have to respond, to deal with those recommendations," the premier said.
The Community Government of Whati wants to review the prohibition ban in favour of a more proactive strategy for managing alcohol and drug consumption, MacDonald's socio-economic study noted.
Alfred Flunkie, a member of the community government council for four years who works as a foreman, said there are older residents in the community who are concerned about more alcohol and drugs if the road is built.
Some younger people, especially those with a lot of children, are hoping a road will come and bring down prices for things like food, he said.
He hopes it will increase recreation opportunities for youth.
"We would like to take those kids out (of Whati) for sports like volleyball and floor hockey," he said, adding a chartered round-trip flight on a Twin Otter to Yellowknife can cost about $5,000.
Early on, Doreen Nitsiza said she had a mixed view of road. But Nitsiza, the community's recreation co-ordinator, also said youth would benefit.
"It will be good to send kids out for sports. We hardly send kids out," she said.
Residents typically head out to other communities like Yellowknife when the winter road is open to buy enough heavy products such as cleaning supplies or sugar in bulk to last a year, Flunkie said. The road could change that. He also said boating to Behchoko in the summer is becoming harder because of lower water levels.
A mining project stands to benefit from the road. Fortune Minerals Ltd. plans to mine cobalt, gold bismuth and copper near the community.
The company already has an environmental assessment approval and mine construction permits. But it needs the road to help secure millions needed to finance construction of the mine.
"With cobalt and gold prices firming, and greater certainty of an all-season road, Fortune is well-positioned to secure the financing needed to begin construction of the NICO mine," David Massola, Fortune's vice- president of finance and chief financial officer, stated in a company news release.
The NICO mine, if built, is projected to operate for 21 years with a processing facility. Material would be shipped to Saskatchewan where Fortune plans to build a refinery.
Speeches in Whati by the premier and other politicians repeatedly pointed to the road helping boost mining potential for the region and the jobs that could follow.
Gary Vivian, president of the NWT and Nunavut Chamber of Mines welcomed the federal announcement in a news release.
