Debates of May 10, 2007 (day 4)

Thank you, Mr. Speaker. Mr. Speaker, my questions are on the Premier’s statement yesterday about the negotiations going on about the concession agreements and the project financing of the Deh Cho project. I think the questions could be answered by either the Premier or the Minister of Transportation. Mr. Speaker, I just want to preface it by, obviously even though I support this project 1,000 percent, it has to stand on its own leg and make a sound business case. But business case for public business is a little different than a private business, which is profit motivated. A bridge like this is a public project and we need to look into costs and benefit analysis. But we throw into that a lot of benefit questions and one of the most important things being reducing the cost of living for northern residents and businesses. The toll that’s being proposed will be imposed on commercial trucking and commercial trucks and commercial haul, and the cost has to be something that the commercial market can bear, and that it needs to be an investment on the part of the government to make this project viable. The fact that the federal government will not come into play as of yet is unfortunate. But if the GNWT can bear the cost and make it viable, I think it’s something that warrants our support. So I’d like to ask the Minister, as the Premier or Minister, whoever’s going to answer the question, about what is the extent of the negotiations that’s going on under the concession agreement and project financing? What are the parameters they are looking at to make sure that the cost and benefit analysis of this will make it viable? Thank you.

Thank you, Ms. Lee. The question is probably most suited for the Minister of Transportation. I’ll address it to the Minister of Transportation, Mr. Menicoche.

Return To Question 52-15(6): Deh Cho Bridge Project

Thank you very much, Mr. Speaker. There has been a cost-benefit analysis done many, many, many times on the Deh Cho Bridge project. Certainly as of last fall or even last year, when we deferred the project, it was because it wasn’t self-financing and needed additional expenditures or money from government. At this point, we’re hopeful that the federal government will still buy into it using the P3 money available. They’re willing to, their P3 project right now as it stands, they’re willing to contribute up to 25 percent of a P3 project, and It is on their National Highway Strategy for the federal government as well, Mr. Speaker. We know that they’re looking at it seriously. It is with the top P3 projects on their books across Canada, Mr. Speaker. Up until this point, that’s where it stands without any formal written commitment. Thank you very much.

Thank you, Mr. Menicoche. Supplementary, Ms. Lee.

Supplementary To Question 52-15(6): Deh Cho Bridge Project

Thank you, Mr. Speaker. My understanding of this project is that government will make an investment, whether it be the GNWT or federal government, to lend the money to the corporation and the corporation will levy enough toll to pay for the project and make a little bit of profit so that the communities can benefit from that. But the return on investment has to be viable. So I’d like to ask the Minister to confirm whether the cost of the project and the increase that’s going on is still making it viable for the corporation to be able to pay the money over a period of time that’s been determined and still make a little profit. I guess I’m asking if, I have to assume, and I’d like the Minister to confirm that this is still an economically viable project for the corporation and for the government. Thank you.

Thank you, Ms. Lee. Mr. Menicoche.

Further Return To Question 52-15(6): Deh Cho Bridge Project

Thank you very much, Mr. Speaker. Once again I’ll commit to continue to share that with committee. In fact, we’re trying to find a time slot sometime early next week. Some of the details the Member is referring to, of course, are in the concession agreement and being negotiated and is confidential at this point. However, once we’re in committee, we’ll be able to share as much as possible that we can with the Regular Members there, Mr. Speaker. Thank you very much.

Thank you, Mr. Menicoche. Supplementary, Ms. Lee.

Supplementary To Question 52-15(6): Deh Cho Bridge Project

Thank you, Mr. Speaker. The Premier’s sessional statement indicated that the negotiations are underway and that construction could begin as early as this fall. So I’d like to ask the Minister about what the timeline is. While he cannot reveal all the details, it certainly sounds like the deals are imminent. So could he give us an indication as to whether it’s weeks away or months away or what is the timeline of that negotiation? Thank you.

Thank you, Ms. Lee. Mr. Menicoche.

Further Return To Question 52-15(6): Deh Cho Bridge Project

Thank you very much, Mr. Speaker. Just with respect to the negotiations, we’re holding firm to a 30-day negotiating period right now. I can just say that at this point it’s not 100 percent either. The project can still fail if we don’t come to terms, but we’re really positive it’s still a 99 percent go at this point, Mr. Speaker. We’ll continue to update committee as this progresses. In fact, at the end of the 30-day period we would be prepared to give even that much more level of detail to committee at that point, Mr. Speaker. Thank you.

Thank you, Mr. Menicoche. Final supplementary, Ms. Lee.

Supplementary To Question 52-15(6): Deh Cho Bridge Project

Thank you, Mr. Speaker. In terms of timing, we are here until next Thursday. We don’t meet again until next August. I’d like to know if he could tell us when is that 30-day period. Maybe he could sneak that answer in and also answer the question as to whether he’s…He mentioned that the federal government has this project at the top of its list, but what is, are there any meetings proposed, are their officials meeting on this project, and could he give us a date on that? Thank you.

Thank you, Ms. Lee. Mr. Menicoche.

Further Return To Question 52-15(6): Deh Cho Bridge Project

Thank you very much, Mr. Speaker. Just for clarification, the negotiation is happening with the Deh Cho Bridge Corporation and, as government, we’re supportive of the initiatives of the Deh Cho Bridge Corporation, but we’re outside the process. We’re not really privy to their discussions. While in fact just last week the Premier had sent a letter to the Prime Minister himself saying, look, in terms of the federal government helping us with this project, it’s a good project for Canada, it’s a good project for northerners, and that’s the stage it is at, Mr. Speaker. We have had many, many meetings on this topic and we’re looking forward to progressing with the project. Mahsi cho.