Connect with us
[bsa_pro_ad_space id=12]

Alberta

ONE RELATIONSHIP AT A TIME:  THE PATH TO PROJECT SUCCESS

Published

8 minute read

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.

JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President & CEO, Canadian Council for Aboriginal Business

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

 

Click to read more stories from this series.

Read more on Todayville.

INDIGENOUS CONSULTATION AND ENGAGEMENT AT CANADA’S ENERGY AND UTILITY REGULATORS

The Energy Council of Canada brings together a diverse body of members, including voices from all energy industries, associations, and levels of government within Canada. We foster dialogue, strategic thinking, collaboration, and action by bringing together senior energy executives from all industries in the public and private sectors to address national, continental, and international energy issues.

Follow Author

Alberta

Red Deer Hospital preliminary designs unveiled

Published on

Alberta’s government shared preliminary designs of the Red Deer Regional Hospital Centre redevelopment with residents from central Alberta.

On March 14, Alberta’s government held its first public information session since January 2023 with Albertans in Red Deer and area about the Red Deer Regional Hospital Centre redevelopment. Albertans have long waited for the redevelopment and Alberta’s government made the first significant commitment and progress on the hospital by allocating $100 million in Budget 2020, followed by another $1.8-billion commitment in Budget 2022.

In addition to preliminary design drawings, residents were able to view a video simulating a flyover of the new patient tower and power plant. Project representatives were also on hand to speak about the project. The session was attended by about 150 residents, media and officials including Ken Johnston, mayor of Red Deer.

“We were excited to share preliminary designs for the Red Deer Hospital redevelopment yesterday. The number of people who attended the session validates the importance of this project to the central region. We are proud of the role Infrastructure is playing in delivering one of the most ambitious hospital redevelopment projects in Alberta’s history.”

Pete Guthrie, Minister of Infrastructure

“As the MLA for Red Deer-North and the Health Minister, I’m very proud of the progress we’ve achieved, and I remain dedicated to advocating for this project. Albertans should be able to access health care when and where they need it. This project will improve health outcomes for Albertans living in Red Deer and across central Alberta by increasing the facility’s capacity and providing much-needed services and resources, including new cardiac catheterization labs, close to home.”

Adriana LaGrange, Minister of Health

Design work began in June 2023. With schematic design now complete, the hospital redevelopment is on schedule and on budget. The next stage of the project, design development, is now underway. Once complete, the new expansion will add up to 200 beds to the existing facility, bringing the total number of beds to up to 570.

With an investment of $810 million over three years in the Budget 2024 Capital Plan, the expansion of the Red Deer Regional Hospital is Alberta’s biggest infrastructure project. Last night’s information session keeps Central Albertans informed about this exciting, transformative investment in our hospital, supporting principles of transparency and accountability in the use of taxpayer dollars.”

Jason Stephan, MLA for Red Deer-South

Quick facts

  • There are two major components of this redevelopment:  
  • Project 1: construction of a new patient tower and expansion and renovation of the existing hospital’s main building
  • Project 2: construction of an ambulatory building
  • The project will upgrade several services throughout the hospital site including:
  • an additional patient tower
  • six new operating rooms
  • new Medical Device Reprocessing department
  • new cardiac catheterization labs
  • renovations to various areas within the main building
  • newly renovated and expanded emergency department, and
  • a new ambulatory clinic building to be located adjacent to the surface parkade

Related information

Continue Reading

Alberta

Premier Smith urges PM Trudeau not to raise carbon tax on April 1

Published on

Premier Danielle Smith met with Prime Minister Justin Trudeau in Calgary to discuss areas of priority for the province.

The meeting was constructive, but there are still several issues on which there is some distance between both the federal and provincial governments. These include the impact of the federal carbon tax, and its cascading effects on inflation, affordability and sustained higher interest rates, as well as the timeline to reach carbon neutrality.

Premier Smith reiterated the growing opposition to the federal carbon tax, which includes seven Premiers, federal members of Parliament, and everyday Albertans and Canadians. The Premier suggested that the Prime Minister could achieve a win if he listened to the many voices raised against the carbon tax and reversed his decision to increase the tax by 23 per cent on April 1.

Alberta remains focused on achieving carbon neutrality by 2050 and is a willing partner in responsible, manageable efforts to see that goal through. The province and the federal government have worked together to see several projects start and progress from companies including Air Products, Dow Chemical and Heidelberg. The Premier highlighted the importance of projects that will move the province and country forward on carbon neutrality, including the Pathways Alliance project. Premier Smith is awaiting the federal budget to see if Ottawa will give more clarity to support it.

Premier Smith also relayed to the Prime Minister the massive opportunity Alberta has to export ammonia to South Korea and Japan, in co-operation with British Columbia, and expressed hope that the federal government would be a partner in this work.

Premier Smith expressed gratitude for the progress on the TransMountain pipeline and was encouraged by federal conversations aimed at replicating the highly successful Alberta Indigenous Opportunities Corporation (AIOC). Indigenous leaders across the country have praised Alberta for leading the way on economic reconciliation and being an example that should be followed. There are opportunities for greater Indigenous partnership in energy projects, including the TransMountain pipeline, and in other industries. Premier Smith also highlighted Alberta’s plans to collaborate with First Nations on issues such as mental health and addiction, infrastructure and housing.

Alberta will remain a willing partner when given the opportunity to do so. There are many ways that the province can co-operate with Ottawa that do not involve the federal government overstepping its constitutional authority, and Alberta will continue to advocate for solutions that will benefit Albertans and all Canadians.

Continue Reading

Trending

X