Debates of March 10, 2009 (day 26)

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Statements

QUESTION 298-16(3): FUNDING ALTERNATIVES FOR LARGE-SCALE INFRASTRUCTURE PROJECTS

Thank you, Mr. Speaker. My question is directed to the Minister of Transportation with regard to the Deh Cho Bridge Act that was passed in this government to build a $165 million bridge across the Mackenzie River at Fort Providence. As part of that proposal, which was to look at the design, build, and finance and own the bridge by way of the Deh Cho Bridge Corporation in which the government will be responsible for paying the cost for what the ferry operation is today with the cost of the bridge crossing, which is about $101.8 million, and then they topped it off to about $2 million a year going forward. We also found out we’re paying for the cost of the tolls that have to be collected for that bridge. It was a proposal that was given to the Minister and Premier by the Gwich’in Tribal Council to look at the possibility of doing a similar project with regard to the Peel River. Yet in response to a letter we see back from the department and especially from the Department of Transportation it seems that they’re not too enthused to do anything like that. They are saying this has to fit within the government’s capital planning process. I’d like to ask the Minister why it is that other bridges built in the Northwest Territories cannot follow what was agreed to under the Deh Cho Bridge Act.

Speaker: MR. SPEAKER

Thank you, Mr. Krutko. The honourable Minister responsible for Transportation, Mr. Michael McLeod.

Thank you, Mr. Speaker. My understanding is that the unsolicited proposal that came from the Beaufort-Delta was brought forward with a price tag and request to put it through the conventional capital process and that’s what we’re doing. I don’t believe I’ve seen a request to a proposal outlining the concepts similar to Deh Cho Bridge.

That’s exactly my point. Under the conventional system of putting this into the GNWT capital planning process, it ain’t going to see the light of day. Yet the Deh Cho Bridge was billed for $165 million by simply passing an act in this House. Will the Minister bring forward a Peel River Bridge Act so that we can do it under the same circumstances as the Deh Cho Bridge Corporation?

The Deh Cho Bridge Act was brought forward as a result of many years of discussions and a very detailed proposal. If the Member would want to bring a proposal for us to consider, we would be pleased to take a look at it. Thank you.

I heard a yes there, so there is hope for this project after all. Mr. Speaker, I believe that in order for this proposal to see the light of day, we do have to find a unique way of doing it. We may have to consider tolls. We may have to consider how you finance it, the cost for the ferry operations, the cost for the ice bridge going forward and also exactly how long a term of the lease there is.

Right now, there is a proposal being developed looking at the different scenarios of a 30 or 40-year lease commitment. Will the Minister consider looking at the possibility of looking outside the GNWT capital planning process and finding ways to finance these projects?

Again, we have an act in place. There was supposed to be some legislation coming forward in regards to a P3 project. I would like to ask the Minister to consider some flexibility in regards to how we look at these projects -- this is not the only bridge that is out there -- and to be able to have the flexibility to at least make an attempt to look at what our options are, looking at these types of big capital projects.

The Member is correct when he states we have to be creative when we look at the projects, and that is going to be the way forward, in my opinion.

There are a number of projects. There are a number of bridges that need to be built across the Territories, five fairly large ones in all told that we need to, at some point, address. Right now, the challenge is to find the financing. If there is a way to do the work and package it up so that it is attractive, affordable and viable, then certainly we would be willing to look at that and talk to my Cabinet colleagues and the federal government or whoever the sources of funding would be arranged through.

Up to now, Mr. Speaker, the request for me to process the submission that was made through the conventional methods, that is what I am doing. That is where the project has been forwarded to for consideration among other projects, Mr. Speaker. Up to now, we have not seen a detailed proposal nor have we asked for one, actually, Mr. Speaker. Until that time, it is difficult to analyze what the concept would be. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. Your final supplementary, Mr. Krutko.

Thank you, Mr. Speaker. Again, we talked about unconventional ways of building capital. That is what the Deh Cho Bridge Corporation Act is. It is an unconventional way of building a bridge for $165 million. All I ask from the Minister is to allow other organizations or bridges to be considered for replacement or being built under public infrastructure that we consider having that option on the table similar to what was in place with the Deh Cho Bridge in light of what is being considered for the Peel River Bridge.

Mr. Speaker, I am not one to discourage good ideas coming forward. I mentioned before that we would be willing to look at any unsolicited proposal. If it makes sense, if it is viable, if there is a way that we can identify the resources to do it or whatever that means may be, I would be glad to do an evaluation on it, having our people see if it is something that is doable, have the discussion with the other Members and talk to my colleagues about the potential of projects such as this. I don’t know where else I can go with it or what else I can commit. The Member has asked for something that I have already agreed that I would look at. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. The honourable Member for Kam Lake, Mr. Ramsay.