Benefits for Aboriginals

Northern Gateway is more than an infrastructure project for the energy industry. It is a partnership between First Nations and Enbridge and can be considered an important bridge between Aboriginals and industry for mutual long term benefit.

Northern Gateway wants to ensure maximum participation of Aboriginal communities in economic opportunities that arise from the project, including equity ownership, directed procurement and employment.

Acting on input from Aboriginal groups and stakeholders, Enbridge has developed a package of environmental and economic commitments for the communities along the route, including coastal communities.

Enbridge is pleased to have entered into numerous protocol agreements with Aboriginal groups along the proposed pipeline corridor. We appreciate that some Aboriginal groups have concerns about the Northern Gateway.  We are working hard to address those concerns and determined to find solutions.

Northern Gateway is prepared to make the following safety and economic commitments to make the sustainability objectives a reality:

1. Aboriginal Equity Ownership.

Northern Gateway is offering Aboriginal people a 10% share in a $5.5 billion project. The long-term financial benefits for participating Aboriginal shareholders will be significant. Aggregate equity ownership is expected to generate approximately $280 million in net income to neighbouring Aboriginal communities, over the first 30 years.

Becoming an owner in this project means Aboriginal groups are going to see cash flow within the first year of operations. Through equity ownership, Aboriginal people will be able to generate a significant new revenue stream that could help achieve the priorities of their people – such as improved health care, education and housing.

2. Procurement, Employment and Training. 

Aboriginal people are expected to comprise approximately 15% of regional construction employment.  Northern Gateway will work to identify direct and indirect employment opportunities for members of neighbouring Aboriginal communities.

Northern Gateway anticipates that combined employment, procurement and joint venture opportunities will reach approximately $400 million in value over the three years during construction.

Aboriginal business involvement in construction activities will be dependent upon community capacity and desire to participate. We are currently entering into commercial memorandums of understanding to ensure interested communities are able to fully participate.

In relation to potential coastal opportunities, Northern Gateway is actively meeting with third party experts to determine how to maximize employment and build progressive business opportunities within Aboriginal communities. (i.e. working to develop models to train tug boat operators, and over time, allow them opportunities to gain ownership of the business).

3. Community Trust.

A Community Trust will be established for Aboriginal and non-Aboriginal communities with a commitment of 1% pre-tax domestic profit to support the trust, measured on a five year rolling average basis.  It’s estimated to exceed $100 million over the 30-year economic life of the Project.

4. Stewardship Programs.

Aboriginal communities along the right-of-way will have access to existing Enbridge stewardship and habitat protection initiatives such as the Neutral Footprint Program, the Natural Legacy Program, the Enbridge School Plus Program, and the Safe Community Program (as applicable).

Benefits for Aboriginals

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  • Northern Gateway, Oct 03rd, 2013 (10 months ago)

    Hi Ian,

    The 10% stake in the project is financially risk-free participation for First Nation and Metis partners. They're not required to invest in the company like the other investors have been. We recognized early on that requiring an investment of capital from First Nations and Metis would result in a significant barrier to their participation, so we eliminated the need for them to put money in.

    Whereas the project's other investors, Enbridge included, have to-date, risked over $300 million in a project that has not yet received an operating certificate.

    In addition to the equity offering to First Nations and Metis, other benefits, all told amounting to nearly $1 Billion dollars are available. We're not aware of any other pipeline project that has offered a similar package of benefits.

  • Ian, Oct 02nd, 2013 (10 months ago)

    Again, specifically, why 10 percent. Why is that a particular number a good number for Enbridge and their large investors.

  • Northern Gateway, May 06th, 2013 (1 year ago)

    Hi Ana, thanks for joining the conversation.

    Aboriginal communiites have been offered a suite of benefits, including an opportunity to own up to 10 percent of the project through an equity investment. There are many other benefits available for Aborginal communities as well; we're proud of the benefits that will come with this project including jobs, business opportunities, skills training, education opportunities and direct community investment through programs like Greater Strides: https://www.northerngateway.ca/news-and-media/northern-gateway-blogs/aboriginal-engagement/actions-speak-louder-than-words/

    We've been consulting with First Nations and other aboriginal communities for nearly a decade. The Joint Review Panel process has been transparent and inclusive for all stakeholders, including First Nations and Metis, to have their concerns heard and addressed, and to be included in the decision making processes of the Project.

  • Ana, May 06th, 2013 (1 year ago)

    I was wondering why FN people's are only receiving 10%? I feel that if you want them to benefit and really make them happy they should not only get more than 10% but also get word in the decision making process of this project.

  • Northern Gateway, Mar 27th, 2013 (1 year ago)

    Hi Asty,

    Thanks for your question. A lot has changed in the marine oil shipping industry over the past 24 years. No one wants to see another Valdez-like incident. Thankfully, safety advancements in the industry are proving to be very successful: https://www.northerngateway.ca/news-and-media/northern-gateway-blogs/marine-safety/exxon-valdez-24-years-later/

  • Northern Gateway, Mar 27th, 2013 (1 year ago)

    Hi Sean, thanks for your question.

    The $280 million is specific to the income this project is expected to generate for participating Aboriginal communities as a result of their equity ownership in the project—you could think of this money as return on investment.

  • Asty Taylor, Mar 26th, 2013 (1 year ago)

    Have YOU heard the call from the Exxon Valdez?

  • Sean, Mar 26th, 2013 (1 year ago)

    Hello,
    Can you explain how 10% of 5.5 billion turns into 280 million over 30 years? Either my math is bad, or you haven't shed full light on that. I assume government taxes, but could you just specify?

    Thanks!

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