Phil Moon Son

The recent downturn with the economy in the Northwest Territories has highlighted the tremendous need for real infrastructure development, and how vulnerable and narrow our regional economies have become.

All across the territories, regions are very dependent on their infrastructure requirements for their specific mining and resource projects.

If the mining and resource industry leaves the North the capacity of Northern-based construction companies and suppliers could virtually collapse. As a Territory are we going to pick up the wake up call, or are we going to let it ring? The NWT Construction Association would like to suggest that a solution may be found in P3 Projects, not the Public, Private Partnership kind but the Pick 3 Priority Projects kind.

The Mackenzie Valley All Weather Road Construction Project is one example of a priority project. Barrie Robb is a Director of the NWT Construction Association and states, "This project (all weather road with fiber optic cable) is basic infrastructure. This basic infrastructure, just like the Trans Canada highway in the south, will enable future development to occur, which in turn creates more jobs and contracting opportunities.

When we talk about grass roots economic development this project is a great example: the Mackenzie Valley highway will stimulate a tremendous amount of economic activity along the valley."

The construction of this project will create in the order of 14,000 construction jobs. However, the biggest benefit of his project will be 200 permanent jobs created to maintain and operate the highway. "I suspect virtually all of those jobs will be based in communities along the highway corridor. In addition the presence of the highway increases the likelihood of other development and exploration, all of which creates more jobs. In their independent study of the economic impact of the all weather road, Meyers Norris Penny reported the road will generate an additional billion dollars worth of revenue to the various levels of government."

Another example of a priority project could be the Taltson Hydroelectric Expansion Project, this expansion would generate almost 700 hundred jobs and would provide a source of clean, renewable electrical power to diamond mines and other industrial customers in the North.

Don Balsillie, chairperson of Deze Energy Corporation, has had a broad range of territorial leadership experience and has been involved in this project since the concept phase and said, "This project will hopefully enable the diamond mine industry to prolong their mine life in their current location due to reliable and cheaper sources of energy. The removal of CO2 carbon from our atmosphere by displacing the use the fossil fuel diesel generating unites has incredible benefits to the environment as well as economic benefits to the North."

In the 2009 economic review of the Northwest Territories the mining and construction industry contributes to almost half of the Northwest Territories gross domestic product (GDP). Not only will these badly needed infrastructure projects generate jobs and training opportunities but will also be a lasting legacy for the people of the Northwest Territories.

Phil Moon Son is Executive Director of the NWT Construction Association, representing contractors in the NWT and Nunavut. He can be reached via email at director@nwtca.ca.