Thank you, Mr. Speaker. The purpose of my statement is to update Members on the Taltson Hydro Expansion Project.
Late last year I asked the chair of the Northwest Territories Power Corporation to review the proposed business model for this project. Based on what has been reported to me, it is clear we need to adjust our course.
Earlier today, the chairman of Deze Energy submitted a letter to the Mackenzie Valley Environmental Impact Review Board requesting more time in the environmental assessment process to address economic gaps.
Recent discussions with the diamond mines clearly indicate that their collective mine life and commitments to buy power cannot, on their own, support financing and construction of the project at this time.
The development of the Taltson Project was premised on Deze Energy’s ability to finalize power purchase agreements, secure regulatory approvals and make a construction decision in time for mobilization on the 2012 winter road. Given current project timelines, this objective is no longer achievable.
While the project has effectively lost a year, through the unique Deze partnership we have invested in business capacity and important environmental and technical knowledge that will hold value well into the future.
Mr. Speaker, tapping in the NWT’s hydro potential continues to be a goal for the Government of the Northwest Territories. Access to clean energy and a renewable source of energy will help power industry, cut energy costs and reduce our dependence on expensive imported diesel fuel.
We have developed valuable expertise over the past months and plan to build on this important work. We want to find the right formula to revitalize this project and work with us to connect our residents, businesses and communities to this important energy source.
This decision gives us the time for a broader perspective, to come up with a business model that will provide real benefits to the people of our Territory, and allow us to preserve our investment made so far.
I look forward to keeping Members up to date as we pursue regional development that supports our shared vision of strong individuals, families and communities benefitting from an environmentally sustainable and prosperous Territory. Thank you.
