A $1 billion loan guarantee by the Alberta Indigenous Opportunities Corporation (AIOC) will allow for a “historic” investment and partnership between TC Energy and a long list of Indigenous communities from across Western Canada.
The announcement was made on July 30. Alberta Premier Danielle Smith, Minister of Indigenous Relations Rick Wilson and Minister of Energy and Minerals Brian Jean attended the announcement, along with representation from TC Energy, the AIOC, and Indigenous leaders.
The $1 billion loan guarantee could allow for more than 70 Indigenous communities across Alberta, British Columbia and Saskatchewan to enter an equity interest purchase agreement with TC Energy Corporation “for a minority equity interest of 5.34 per cent in the NGTL System and the Foothills Pipeline assets... for a gross purchase price of $1 billion,” according to TC Energy.
The agreement is backed by the AIOC and was negotiated by a consortium committee representing Indigenous communities across Western Canada.
“This historic partnership will enable up to 72 Indigenous communities closest to the Partnership Assets to become equity owners in the 25,000-kilometre highly integrated network of natural gas infrastructure assets spanning western Canada,” according to TC Energy. “Investment in these critical energy assets delivers access to long-term revenue sources that will help create meaningful change for Indigenous communities.”
The AIOC was created under the previous leadership of former-premier Jason Kenney, to help Indigenous Nations and groups “transform ideas and innovation into action,” according to information from the AIOC. The corporation supports “Indigenous investment in natural resources, agriculture, telecommunication and transportation projects, using up to $3 billion in loan guarantees to help make it easier to access capital, improve lending terms and make financing more affordable.”
“AIOC is proud to support this partnership with communities across Alberta, British Columbia and Saskatchewan with a $1 billion loan guarantee to facilitate this landmark investment,” said Chana Martineau, CEO with AIOC. “This transaction marks a profound step toward economic reconciliation, providing an unmatched opportunity for sustainable growth and prosperity for the participants.”
Speaking of the impact this type of agreement could have on communities, Martineau said it will drive economic activity into areas that do not necessarily have economic activity.
According to a video created by the AIOC, an arena project in Goodfish (Whitefish) Lake is being built thanks to Goodfish Lake’s involvement with the AIOC, and the move to purchase part of the Cascade Power Project near Hinton. This was the first AIOC program.
Goodfish Lake is located about 70 km northwest of St. Paul, and 70 km south of Lac La Biche.
Martineau noted that building an arena in the community creates a healthier community, brings sporting events to the community, and generates employment.
Another AIOC project in northeastern Alberta is the Lindbergh Cogeneration Facility, which is a partnership between Frog Lake First Nations and Strathcona Resources Ltd.
A path forward
Speaking about the Tuesday announcement, Smith said the loan guarantee is seen as a path forward for Indigenous communities, creating jobs for future generations. She described the move as “reconcili-action.”
“When complete, this landmark deal will be the largest Indigenous equity ownership agreement in Canadian history, creating significant new revenue streams for the unprecedented number of Indigenous communities involved in Alberta, British Columbia and Saskatchewan,” according to the Government of Alberta.
François Poirier, TC Energy’s President and Chief Executive Officer was also in attendance at the July 30 announcement.
“As owners, Indigenous communities will have resources to invest for the future and greater economic sovereignty,” said Poirier. “The Alberta Indigenous Opportunities Corporation is leading the world with its innovative approach to supporting Indigenous economic opportunity. TC Energy is proud to be a part of this historic agreement.”
Responding to questions from the media, Smith said taxpayers should be assured that there is limited liability with the loan guarantee, but the benefit will be great.
Also in attendance at the announcement were Roy Fox “Makiinima,” Chief of Blood Tribe and Lee Thom, councillor with Kikino Métis Settlement.
“It’s been a long road here,” said Thom, adding, he was “honoured” and “humbled” to be part of the announcement. He believes the deal will offer long lasting investment for “generations to come.”
“It’s truly a proud day for me,” said Thom.
Chief Fox said he was thankful for the opportunity to directly participate in the energy sector. He referred to the deal as a good business opportunity and a win for everyone.
“I know that there is still more work to be done,” said Fox.
Next steps
Now that the agreement has the support of the AIOC and the consortium, the agreement will be presented to Indigenous communities for review.
“Each independent community will determine their participation in the opportunity, exercising their right to self-determination,” according to TC Energy.