ONE RELATIONSHIP AT A TIME: THE PATH TO PROJECT SUCCESS
Infrastructure development is full of risks, which are managed in a number of ways. Risk management might sound cold and impersonal, but it has the potential to incent real human connections and build genuine relationships. Key risks may have leading practice on how best to mitigate, transfer, ignore or hold those risks, but when it comes to energy development across Canada, meaningful consultation and accommodation is non- negotiable. As most are well aware at this point, the Crown must consult and accommodate where Aboriginal or Treaty rights are impacted. Far from being a mandatory ‘checkbox’ in the process of project development, the undertaking of engagement and relationship-building holds the potential for mutual benefits for both the project and the impacted First Nations, Inuit, or Métis community.
Genuine relationship-building is a solid foundation for partnership on energy projects, to the benefit of both parties. This partnership can take the form of Impact Benefit Agreements (IBA) Mutual Benefit Agreements (MBA) or equity participation arrangements, among others. Both IBAs and equity arrangements have the potential to grow economic and social prosperity, but determining which approach is the best fit will be influenced by the priorities and capacity of both the developer and the Indigenous community.
In both these common approaches there are similar objectives:
- Compensation for and mitigation of potential impact
- Influence or control over project design and development
- Securing benefits for the community
- Securing social license
- Working towards consent and support of the project
- Reduced risk of opposition or disruption
- Improved financing as a result of managed risks
Both also reflect an underlying premise that it is no longer acceptable to develop resources or energy infrastructure in a manner where impacts fall to one party, and benefits to the other.
When comparing and contrasting IBAs and equity arrangements, some key considerations are the degree of potential impact, the capacity and interest of the community in the project’s development and management, the project’s term, risk tolerance of either party, and financing and funding opportunities.
Impact Benefit Agreements between a project developer and impacted Indigenous community formalize project benefits sharing. Often, these IBAs will provide some employment, training, and contracting opportunities, but the economic benefits will often be tied to the project’s degree of impact to traditional lands and lifestyle (e.g., land impacts, hunting and gathering impacts, etc.). Regardless of how well the project is performing, the IBAs will guarantee a steady revenue stream to the Indigenous community. This can be a safe bet for risk adverse councils but holds the potential for serious revenue inequity in the case where the project is successful and very profitable.
Pivoting from partnership to ownership, equity participation agreements clearly scale the revenue sharing between the project developer and community as the project success and profitability increases. If the energy project does well, the First Nation, Inuit, or Métis equity partner is also going to do well and see greater revenues. The inverse is also true. In these equity arrangements, which are becoming more prevalent in the eastern provinces, the Indigenous partner has a greater say in project operations, as they are a shareholder. It also arguably provides more security to the developers, as the Indigenous partner is a proponent of the project, and no longer a potential opponent. Both partners would look to maximize the economic benefits of the project, while minimizing the adverse economic, environmental and social consequences flowing from the project. Without focusing too much on the direct revenue arrangement, equity arrangements will often also include guaranteed or preferential opportunities for contracting, procurement, employment and training.
To be clear, in either an IBA or equity arrangement model, the duty to consult and accommodate is neither negated nor automatically fulfilled. But the relationship between developer and community becomes formalized and clearer, adding transparency and certainty to an otherwise risk-filled process.
Managing project risk is a mandatory part of project development. But the means of managing risk holds so much potential for empowerment, leadership, and benefit. Project success and economic development are not an end in themselves, but rather a means to an end – the end being healthier and more prosperous First Nations, Inuit, and Métis communities, and Canada as a whole. All the while moving the dial on reconciliation through real connections, business developments, and cultural education – one relationship at a time.
Robyn Budd was a 2019 member of the Energy Council of Canada’s Young Energy Professionals program and was a Manager in KPMG’s Global Infrastructure Advisory practice, based in the unceded territory of the Musqueam, Squamish, and Tsleil-Waututh nations (Vancouver). She was also the Leader of KPMG’s National Indigenous Network.
Zachary McCue is Founder of The Waabgaag Group, with expertise in renewable, infrastructure, and resource development, specializing in equity participation and impact benefit agreements. He is a proud member of Curve Lake First Nation and is based in Ontario.
Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.
Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.
Alberta Premier Jason Kenney battles COVID-19 hospital crisis, internal party revolt
EDMONTON — Alberta Premier Jason Kenney, facing a mushrooming COVID-19 hospital crisis that now threatens to topple him as leader, accepted the resignation of his health minister Tuesday.
Kenney said it was Tyler Shandro’s idea to leave the health portfolio.
“Minister Shandro offered his resignation. He and I both came to the conclusion that it would be best to get a fresh pair of eyes and a fresh start at the health ministry,” Kenney said.
He noted it has been a difficult stint for Shandro, including him and his family being harassed by anti-vaccination protesters over the summer.
“It has been a gruelling two-plus years for Tyler,” he said.
Kenney replaced Shandro with Labour Minister Jason Copping in a cabinet shuffle and gave Shandro Copping’s job.
The official swap in roles was made in a brief ceremony closed to the public but broadcast on the government’s website.
Meanwhile, Municipal Affairs Minister Ric McIver asked the federal government for air transportation help if necessary to move patients to care facilities outside Alberta and for more intensive care nurses and respiratory therapists.
Federal Public Safety Minister Bill Blair responded on social media: “Federal officials have been engaging their counterparts in Alberta for the past week to offer help. I have made it clear that when a request is received, it will be approved. We will work together to provide for the people across Alberta.”
Opposition NDP Leader Rachel Notley said the timing shows the government made a political decision on when it would ask for help from Ottawa.
“(They) delayed asking for critically important help that was required within our health-care system until after the federal election,” Notley said Tuesday.
“They put the politics of the Conservative Party at large ahead of the needs of Albertans and those front-line health-care workers who are working desperately in our hospitals to keep people alive.”
Last week, Alberta asked other provinces for help when it declared a state of public health emergency. At that time, Kenney reintroduced gathering restrictions and announced a form of vaccine passport.
Kenney said preparations with Ottawa are precautionary in case the COVID-19 health situation worsens.
Alberta has close to 21,000 active COVID-19 cases. On Tuesday, there were a record 996 COVID-19 patients in hospital and 222 of them were in intensive care, well over the normal ICU capacity.
The province also reporter 29 additional deaths, bringing the total since the pandemic began to 2,574.
Many surgeries have been cancelled and Kenney estimated last week that hospitals could be overwhelmed by the end of the month without direct action. Doctors are being briefed on criteria to use, if necessary, for which patients get scarce life-saving resources and which do not.
The premier is facing not only public, but internal backlash from the United Conservative rank and file as well as from caucus members over his handling of the pandemic.
Joel Mullan, the party’s vice-president of policy, said Kenney needs to step down or face a fast-tracked review of his leadership.
“(A resignation) is necessary because both party members and the public have lost faith in Jason Kenney’s leadership,” said Mullan.
He said Kenney has failed by constantly making extreme, inflexible policy decisions on COVID-19, only to retreat when the shifting, mutable crisis has forced his hand.
In the latest retreat, Kenney introduced proof of vaccination requirements after proclaiming for weeks he would never do so.
“We paint ourselves into a corner where there’s no other option but to turn yourself into a liar to get out of it,” said Mullan. “This is a highly fluid situation with a virus we don’t have a firm understanding of yet.
“There’s no management of public expectations. Instead, it’s just telling people, ‘Nope, this is how it’s going to be’ until it isn’t. It’s no wonder that people don’t trust him anymore.”
Kenney is not facing a party leadership review until late next year unless at least 22 United Conservative constituencies vote to hold one earlier.
Mullan said more than 30 constituency associations have said they intend to call for a review but most have yet to formally ratify their decisions.
“I don’t know exactly when it will be done, but it seems to be moving quite quickly.”
Mullan said if a leadership review were to be called, it would take place within two to three months. Kenny would need a simple majority of votes by the membership to keep his job.
“If he gets less than 50 (per cent), he’s fired.”
Asked about Mullan’s comments and discontent in his caucus, Kenney said he is focused not on internal politics but on the health crisis.
“I believe I have the confidence of the members of my party, of our caucus, of our party board. There will be a leadership review in due course,” he said late Tuesday.
Last week, Dr. Deena Hinshaw, Alberta’s chief medical officer of health, admitted the fuse on the explosive fourth wave was lit in July when Kenney lifted almost all health restrictions, faster than any other province. He said it was safe to do so because 70 per cent of eligible Albertans had received at least one dose of vaccine.
Kenney declared COVID-19 was effectively defeated and that a future rise in cases could be accommodated in the health system. He said he didn’t envision needing a fallback.
After that, vaccination numbers effectively stalled and fell behind other provinces. That prompted Kenney to recently offer $100 to anyone getting a first or second shot.
Notley said Kenney’s government failed to act during July and August as case numbers spiralled and the premier went on vacation.
“There are 60 members of the UCP caucus who sat on their hands from between 30 and 40 days in the latter part of this summer and did nothing, even when they had the information that the so-called Open For Summer Plan was going to fail and Alberta’s health-care system was going to be fundamentally and terminally threatened,” she said.
“And that is the group of people who are now pulling out the knives.”
Last week, he said he didn’t act earlier because he didn’t believe Albertans would have followed renewed health restrictions.
This report by The Canadian Press was first published Sept. 21, 2021.
Dean Bennett, The Canadian Press
Mom, toddler found dead were killed in suspect's Hinton, Alta., apartment: RCMP
HINTON, Alta. — RCMP say a woman and her 16-month-old toddler found dead in Hinton, Alta., were killed in the apartment of the suspect charged in their deaths.
Police say the bodies of the 24-year-old woman and her child were discovered last Friday but they are unable to say where they were found because the case is before the courts.
RCMP in a release say they died on Thursday — the day before they were reported missing.
Police say autopsies completed on the weekend determined the deaths are homicides.
Robert Keith Major, 53, of Hinton, has been charged with two counts of second-degree murder and one count of indignity to human remains.
RCMP say the mother and child lived in the same apartment complex as Major, whose next court appearance is Oct. 20 in Hinton provincial court.
This report by The Canadian Press was first published Sept. 21, 2021
The Canadian Press
Note to readers: This is a corrected story. Previous version had homicides on Wednesday, found Thursday.
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