Powering the way to prosperity!

The Highway 37 power corridor is alive and well and still being debated, as proponents of electrifying the northern reaches of the Northwest continue to make their case.

The Northwest Power Line Coalition has been increasing its visibility of late, in a bid to have the electrification project once again put back on track, citing the opportunity to create jobs and economic development as the fundamental reason to move ahead.

The half billion dollar electric project suffered a setback with the decision not to go ahead with the Galore Creek mining development, which according to some is still a viable and ongiong conern. However, Galore Creek aside for those that want to see the project move forward the potential for over 3.5 billion dollars of development waiting in the wings is key, and an incentive that should help the province decide to bring power to the corridor.

The issue was featured recently on the Opinion 250 website, where Minister of Energy, Mines, and Petroleum Resources, Richard Neufeld was quoted as saying that the extension of power along highway 37 north will only come about if a major producer agrees to pay part of the cost of the line.

The absence of private participation and funding is and will remain the main road block to moving forward on the long discussed proposition. Though the climate to bring private participation seems to be warming up and the push to move forward is gaining a bit of momentum.

The Daily News featured the latest developments in the debate, featuring the project as the front page story in Thursday’s paper.

POWER LINE KEY TO NORTHERN PROSPERITY SAY SUPPORTERS

Transmission line to Bob Quinn Lake would generate 2,000 jobs: report

By Leanne Ritchie
The Daily News
Thursday, April 17, 2008
Pages one and two

A half-billion-dollar transmission line in Northwestern B.C. would create six times that amount of economic activity, but without it that investment will never take place.

So says the Northwest Power Line Coalition, which released preliminary findings yesterday of a study into the potential benefits of a power line along Highway 37 in Northwest British Columbia.

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According to the preliminary findings made available by Macquarie North America, providing electric power along Highway 37 has the potential to achieve $3.5 billion in capital investments and to bring eight mining projects to production.

The estimate does not include the Galore Creek project.

"Even without the Galore Creek project, the benefits of a power line along Highway 37 are significant," said Pierre Lebel, spokesperson for the Northwest Power Line Coalition.
“There is a potential to realize $3.5 billion in capital investment in Northwest B. C., but this is unlikely to happen without the power line.”

The Northwest Transmission line was to have been a joint project between the province, Tech Cominco and NovaGold, with the former funding $350 million and the later $150 million.
However, the project was cancelled when the mining companies announced the Galore Creek project was going to cost three times more than anticipated.

The transmission line, which would provide electricity in the area north of Smithers to Bob Quinn Lake, would additionally have the potential to create 2,000 jobs; would generate more than $300 million in economic activity and governments would benefit from more than $75 million in annual tax revenues, said the study.

The preliminary findings of the study also highlighted the economic challenges facing the Northwest region of the province where the unemployment rate is much higher than the B. C. average.

And between 2001 and 2006 the population of the Northwest declined sharply – by seven per cent – compared to a five per cent increase across the province.

“Northern communities believe that construction of the power line would provide an economic benefit to the region,” said Janine North, chief executive officer of the Northern Development Initiative Trust.

“The preliminary findings of the Macquarie study suggest that electrification of Highway 37 will attract needed investment and jobs for the region, including additional opportunities for joint ventures with First Nations.”

“We have concerns around the cumulative social, cultural and environmental impacts from the collective proposed industrial activity which may be created by the proposed Northwest Transmission Line, but we have a process for assessment by the Tahlan Nation with BC Hydro for addressing these concerns,” said Chair Curtis Rattray of the Tahltan Central Council.

“The Tahltan Central Council looks forward to the province of British Columbia signing the agreement so that the Tahltan Nation can begin the process for assessment – including social, cultural and heritage studies described in the agreement - so we can make informed decisions about the proposed activities.”

Macquarie Group is an international financial institution with considerable expertise in major capital infrastructure project financing. Macquarie North America Ltd. was retained last month to examine the economic aspects of the power line along Highway 37.

The preliminary findings are subject to review and finalization. The final report is expected to be completed in the spring of 2008.

The Northwest Power Line Coalition includes the Northern Development Initiative Trust with its 40 member communities as well as the Mining Association of British Columbia, the Association of Mineral Exploration of British Columbia, a number of First Nations, mining companies, independent power producers and local businesses.