Benefits for Aboriginals

BenefitsforAboriginals a

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).

Benefits for Aboriginals

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Comments
  • Sonya, May 01st, 2013 (2 years ago)

    I give credit to Enbridge for all the efforts made to involve Aboriginal communities and provide opportunities for Aboriginal participation but I just wish Enbridge would learn to take No for an answer rather than pressure these oppressed communities by selling stories of the fantasy wealth this project is going to bring....very sad story this has turned out to be indeed.

  • Mike, Apr 28th, 2013 (2 years ago)

    This project has enormous economic benefits, can't people see that this is a good thing for Canada?

  • Ace, Apr 12th, 2013 (2 years ago)

    I support the Northern Gateway Project, hopefully it gets approved soon.

  • Northern Gateway, Mar 07th, 2013 (2 years ago)

    Hi George and Robb, thanks for your comments and questions. Please accept our apology for the delayed response.

    Liability is well established in Canadian law. This blog post outlines who is responsible for operational safety and liability for incidents: http://www.northerngateway.ca/news-and-media/northern-gateway-blogs/marine-safety/polluter-pays-it-s-the-law/

  • robb, Nov 24th, 2012 (2 years ago)

    George's question deserves an answer. If there is a spill/leak, what specific liability does Enbridge accept? Have you committed to a dollar amount? Does your liability end when a ship picks up the diluted bitumen? What about possible long term damages to fisheries, tourism, logging, etc? Would people in other sectors be adequately compensated? Is their an insurance policy to cover costs in place? What is the coverage?

    I'm glad that you feel that as citizens in a democracy we all have the right to disagree, but this is a question of facts not opinion. What has Enbrige committed to in terms of liability?

  • george kalischuk, Nov 15th, 2012 (2 years ago)

    Who will pay for the Enviromental damage that is certain to happen. Pipe line env. damage? how about ocean env. damage ? Ships of foregn registry? What is Canadian law liability by Can govts? I suspect $0 ?

  • Northern Gateway, Oct 19th, 2012 (2 years ago)

    Hi Jeffrey, thanks for joining the conversation. We respect Canadians' right to express their opinions—it's a hallmark of our society that we can respectfully disagree and continue to have dialogue.

  • Jeffrey, Oct 19th, 2012 (2 years ago)

    Thank you for answering my question.
    However, I'm afraid I have to respectfully disagree with you about Aboriginal support for this project. You'll find that this site quite contradictory to what you've been saying:
    http://www.defendersoftheland.org/story/315

  • Northern Gateway, Oct 19th, 2012 (2 years ago)

    Hi Jeff, 10% is the total equity stake in the project available to Aborginal equity partners. $5.5 billion was the estimated project cost in 2010. Aboriginal equity partnerships are expected to generate $280 million in revenue for these partners over a 30 year period.

    We regularly consult with Aboriginal communities along the proposed route and can say confidently that we don't agree there is "virtually unanimous" opposition based on our consultations. The equity partnership agreements demonstrate some communities' willingness to engage in open dialogue and share in the substantial benefits that will arise with this project.

  • Jeffrey, Oct 19th, 2012 (2 years ago)

    I'm not quite sure how 10% of $5.5 billion is $280 million...shouldn't it be $550 million?

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