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 formal 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 Neutral Footprint Program, Natural Legacy, Schools Plus, and Safe Community (as applicable).
Our commitment to reduce our environmental impact where it is felt most: on the trees we remove, the natural habitat we permanently impact, and the energy we consume to power our operations
Northern Gateway announces $1.5M education & training fund. Read more.