Nisichawayasihk Cree Nation

Economic Development

Sharing the Profits as Partners
NCN has negotiated an agreement designed to ensure the project delivers immediate, short-term and long-term benefits.

NCN could own up to 33 percent of the Generation Project through the Taskinigahp Power Corporation (TPC), which is wholly owned by NCN. We have until the construction is complete in 2012 to decide what level of ownership we will take.

Training and Jobs
Among the immediate benefits, one of the main accomplishments already in place is the new Atoskiwin Training and Employment Centre of Excellence. ATEC is an accredited technical school located in Nelson House.

In terms of direct project benefits during construction, qualified NCN Members will be given first preference for jobs on the project. Over 300 NCN Members have already completed Wuskwatim-related training through ATEC, since 2003.

Many of our Members are already working in Wuskwatim-related jobs.

Contract Opportunities
There are also be opportunities for NCN businesses and joint venture partnerships, which will get first preference on contracts for specific components of the project without the need for competitive tendering.

About $100 million in contracts have already been negotiated for such things as access road construction, catering and security.

NCN May Receive at Least $3 Million Annually
Assuming NCN takes a 33 percent stake in the Generation Project, in the early years of the partnership, much of the profit from Wuskwatim will be used to pay back the loans from Hydro.

However, in these early years NCN will have access to a minimum of about $3 million annually for community programs, from revenues from water power rental and dividend loans.

As the loans are paid off, the annual revenues will increase.

Loans Will be Provided
The Wuskwatim Generation Project is currently estimated to cost about $1 billion.

The Wuskwatim Power Partnership will borrow 75 percent of the cost and this will be treated as the partnership’s long-term debt. The remaining 25 percent will have to be paid in cash by the partners.

NCN’s one-third share of this capital investment is currently estimated around $84 million. But NCN would only need to come up with $28 million, because Hydro will lend TPC two-thirds, or around $56 million. NCN would raise the $28 million through other funding sources, over the six-year period of construction.

Projected Benefits Over Longer Term

Projections of financial benefits over the next 25 years include:

About $11.5 million to train and employ Members in the community and on the project
Direct negotiated contracts of approximately $100 million in contracts mentioned above
About $5 million in wages to community members for work on the project
About $100 million in revenues over the initial 25-year-term of the project.

The total benefits to NCN and NCN Members in this period are estimated to be about $216.5 million. Looking farther into the future, once all the loans are repaid, NCN could receive revenues of tens of millions of dollars per year.

Taskinigahp Trust to be Established
To manage the revenues, NCN would create a new trust called the Taskinigahp Trust that will be similar to the existing Nisichawayasihk Trust.

Profits to Fund Community Programs
NCN's expectation is that the profits from the project will provide a long-term, independent source of revenue that will help ensure the future well being of our people and community.