Thank you, Mr. Speaker. Mr. Speaker, I’d like to join my colleagues in asking the Premier some questions on the Taltson Hydroelectric Expansion Project and the government’s involvement with Deze Energy Corp. First of all, I think the question that I’d like to ask the Premier, and I know a number of folks across the Northwest Territories watch the proceedings of the House, I’d like to ask the Premier if he could explain to the public and to the Members of this House exactly how the $700 million or the estimated cost of the expansion and the transmission line is going to be paid for. Thank you.
Thank you, Mr. Ramsay. Mr. Roland.
Thank you, Mr. Speaker. Mr. Speaker, the project will be paid for by the power purchase agreements, the sale of energy to the mines. That’s how it’s going to be paid for. Thank you.
Mr. Speaker, I thank the Premier for that. I was thinking more of the upfront cost, the initial capital investment of upwards of $700 million. How will that be arrived at? Thank you.
Mr. Speaker, once the power purchase agreements are signed, then those are bankable in the sense of being able to go out and go to the financing market so that they can then get the money to build this facility. The issue, as was laid out to Members and was raised earlier, was during the construction phase, until the power can flow there needs to be a backstop. There were initial requests made in the previous government to have a request made to the federal government to give an exemption around this project. The last government, the response wasn’t favourable to that request. The work has continued and the idea…and there’s been some discussion lately about finding a private sector partner to step in and carry that and see that part of the project started. Thank you.
There certainly are some parallels here between the government’s participation with the Deh Cho Bridge Corporation and Deze Energy Corporation. We backstopped the Deh Cho Bridge Corporation in the early stages, to the tune of almost $10 million. I’d like to ask the Premier how much investment the Government of the Northwest Territories, through the Power Corporation and the Hydro Corporation, have invested in Deze Energy. Thank you.
Since the start of this, the concept of this has been put together. It’s been, I believe, and I’ll have to double check the information, but I believe it’s in the neighbourhood of $13 million of investment since the previous government into the life of this government. Thank you.
Thank you, Mr. Roland. Your final supplementary, Mr. Ramsay.
Thank you, Mr. Speaker. Mr. Speaker, considering we have a substantial investment of public funds in Deze, I’m just wondering how we account or how we provide oversight as a government to the work of Deze Energy. I’ve been a Member here since 2003 and we’ve talked about power purchase agreements in this House for years and there still aren’t any bankable power purchase agreements that the corporation, the Hydro Corporation, the Power Corp and Deze have entered into with any mine. I’m just wondering, again, when can we expect any movement on power purchase agreements, because it is taking an inordinate amount of time for these guys to work out a deal with the existing mines. Thank you.
Mr. Speaker, to be fair, the previous governments that initially got this concept together put the pieces together, presented to Members the idea on how to move forward through this partnership. At that point there is no number to be able to say through, for example, the environmental review process could add additional dollars much like by the environmental review process looked at it, adjusting the line through the East Arm, that could add some dollars to this project. We could not sign power purchase agreements until we get through the environmental phase, because we need to know the final numbers and cost of construction. That could be then calculated to the kilowatt hour sale of energy. We are expecting in the very near future to be able to come forward on that, because, again, there is no project without these power purchase agreements. Thank you.
Thank you, Mr. Roland. The honourable Member for Nahendeh, Mr. Menicoche.
