Backgrounder - NWT Mackenzie Valley Highway Feasibility Study – Wrigley to Dempster Highway

The Canadian Northern Economic Development Agency (CanNor) has approved $3 million in funding over 2 years under the Community Adjustment Fund (CAF) for a study that will determine the feasibility of constructing a portion of the Mackenzie Valley Highway from Wrigley to the Dempster Highway near Inuvik.

This new study will complement a smaller feasibility study, funded in September of 2009, on the potential for constructing the northern portion of the highway from Inuvik to Tuktoyaktuk on the Arctic coast. Both sections of the proposed all-season road would connect to the existing Dempster Highway.

The new funding will be used by the GNWT's Department of Transportation (DOT) to develop a comprehensive Project Description Report (PDR). The PDR will provide detailed environmental and engineering information to help regulators assess potential impacts of the project. This may include information such as the work methodology, proposed highway route, estimated capital costs, preliminary project design and work schedule, survey and mapping products, environmental baselines, impact management and mitigation strategies, public consultation results and traditional knowledge. The PDR will help governments and stakeholders to identify and evaluate estimated capital costs, timelines, human resource requirements, environmental impacts and technical issues, as well as broader social and economic impacts and benefits.

As the proposed route crosses Gwich'in Settlement Area lands, Sahtu lands, Deh Cho asserted territory and Crown lands, the project will be conducted by the GNWT's Department of Transportation (DOT) in partnership with the relevant land claim settlement groups and other applicable parties, including local governments. The unique partnership is expected to demonstrate a way forward for other projects in the territory.

Anticipated benefits from improved year-round transportation access to the region include reduced costs for future onshore natural resource production projects; increased opportunities for resource exploration; an increase in tourism; improved opportunities for marine transportation and port development; and significant direct and indirect labour creation and business opportunities in both the short and long-term.

A comprehensive Mackenzie Valley All-weather Road Economic Analysis (GNWT DOT, September 16, 2009) estimates job creation from any future construction and maintenance of the road would be:

• 7,785 one-time jobs in the NWT
• 6,297 one-time jobs in the rest of Canada
• 78 long-term jobs in the NWT and 15 in the rest of Canada
• 128 long-term jobs in the NWT and 33 in the rest of Canada from maintenance

Community Adjustment Fund (CAF)

Federal investment in this initiative is being provided through CanNor's Community Adjust Fund (CAF). Canada's Economic Action Plan provides $1 billion nationally over two years for the CAF to help create and maintain employment in communities affected by the global recession. Longer-term economic and environmental benefits are also considered. The CAF provides $32.8 million for the three territories until 2011.

The CAF is one of a suite of programs administered by the newly established Canadian Northern Economic Development Agency (CanNor). CanNor is responsible for coordinating and delivering federal economic development activities in the territories, and for policy, research and advocacy. This announcement reinforces the Government of Canada's work to advance an integrated Northern Strategy to exercise Canada's Arctic sovereignty, protect the North's environmental heritage, promote social and economic development, and improve and devolve northern governance.