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Alberta

ONE RELATIONSHIP AT A TIME:  THE PATH TO PROJECT SUCCESS

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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.

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Alberta

Calgary panda pair heading home to China after pandemic crimps zoo’s bamboo supplies

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CALGARY — The Calgary Zoo says two giant pandas are on their way home to China today.

The zoo said in May that it would be sending the pair back early because the COVID-19 pandemic was making it difficult to source bamboo.

The plant makes up 99 per cent of the animals’ diet and the zoo has said it was an expensive and all-consuming effort to cobble together supplies from across North America.

The zoo says on Twitter it was a difficult decision to send the pandas home three years earlier than planned.

It says it took months of hard work to secure international permits to get the pandas home.

The zoo posted photos of reams of paperwork needed for the journey, the crates that were to carry the pandas and the Lufthansa Cargo plane that was to take them to China.

The two adults, Er Shun and Da Mao, were on loan from China to Canadian zoos as part of a 10-year deal signed in 2012. They were to stay in Calgary until 2023.

Two cubs, Jia Panpan and Jia Yueyue, were born in Toronto in 2015. They were sent to China as planned in January.

The price tag to have the pandas in Calgary was around $30 million, including $14.4 million for the Panda Passage exhibit itself. Expanded parking lots, washrooms and restaurants were also required to accommodate an expected influx of visitors.

This report by The Canadian Press was first published Nov. 27, 2020.

Lauren Krugel, The Canadian Press

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Alberta

Alberta adds 700 enforcers to stop COVID-19 rule-breakers as hospitalizations climb

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CALGARY — Alberta is giving 700 more peace officers the power to enforce COVID-19 restrictions as hospitalizations for the virus continue to climb in the province. 

“We are not asking these officers to stop cold their day-to-day priorities or to harass responsible Albertans going about their everyday lives,” Justice Minister Kaycee Madu said Friday, as Alberta reported 1,227 new COVID-19 cases and nine more deaths. 

Police officers and health inspectors also have the ability to enforce the rules. 

Federal data shows that as of Friday, Alberta had the highest seven-day infection rate in Canada with 209 cases per 100,000 people. 

Alberta has 405 COVID-19 patients in hospital, including 86 in intensive care. A week ago, there were 55 patients in intensive care with COVID-19. 

Postponing surgeries is one of the ways the province is freeing up space to accommodate more people severely ill with the virus. 

New measures came into effect Friday to help blunt the spike in cases. Private indoor social gatherings are banned, capacity limits have been imposed on stores and students between grades 7 and 12 switch to remote learning on Monday. 

Fines for breaking the rules range from $1,000 to $100,000 in extreme cases that make it to court. 

When asked whether there would be crackdowns on anti-mask rallies, Madu said police will make independent decisions. 

“But as minister of justice, my expectation is that those who are in violation of the measures that we have put in place would have to be held accountable.”

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, said she is disappointed to hear about Alberta Health Services inspectors being verbally abused. 

“Nobody deserves that, least of all the people who are working to keep all of us safe,” she said. 

This report by The Canadian Press was first published Nov. 27, 2020. 

Lauren Krugel, The Canadian Press

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november, 2020

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