The federal government has announced a further $2.8 million toward moving the Kivalliq Hydro-Fibre Link project into the next phase of development.
They project would bring hydro power from Manitoba into the region, moving communities away from diesel fuel use along with a parallel high-speed internet initiative.
The Canadian government’s commitment to the project already exceeds $35 million.
Dan Vandal, minister of Northern Affairs and the Canadian Northern Economic Development Agency (CanNor), announced the latest funding contribution on March 21. This round of funding will push the development of the engineering, design and the environmental fieldwork necessary for the project to move forward, with construction is expected to begin by 2028.
The Hydro-Fibre Link proposes to build a 1,200 km, 150-megawatt transmission line made from fibre-optic cabling that would connect Manitoba’s grid to the Kivalliq. It is estimated that the project will help contribute $3.2 billion to Canada’s GDP while generating $8 billion in revenue over the next 50 years.
This “nation-building project” will result in taking five communities — Arviat, Baker Lake, Chesterfield Inlet, Rankin Inlet and Whale Cove — and a gold mine off costly and environmentally unsound diesel while delivering high-speed internet to the region. It would also help with significantly reducing risk associated with shipping such heavy fuels across Arctic waters, preventing future spillages, the federal government stated.
While many Northern communities continue to rely on diesel for electricity and heat, contributing to climate change, this Inuit-led project “will play an important role in reducing energy costs and pollution in the Kivalliq region, while helping to create local jobs and multi-generational socio-economic benefits”, according to the federal government’s press release.