Major Power Transmission Line to Be Fast-Tracked by Carney

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(Bloomberg) — Prime Minister Mark Carney will name a major electricity transmission line in British Columbia to his list of nation-building projects eligible to be fast-tracked, according to people familiar with the matter.

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The North Coast Transmission Line, or NCTL, is a top priority for BC Premier David Eby, and is aimed at unlocking resource projects in the remote region and connecting them to sources of clean power. 

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The project would twin an existing transmission line running between the cities of Prince George and Terrace in northern BC, and build new branches key to developing critical mineral mines and natural gas exports.

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It will be built in phases and is currently estimated to cost about C$6 billion ($4.3 billion). BC Hydro — the province-owned electricity utility — intends to start construction next year.

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The Canada Infrastructure Bank has also discussed financing the project, which could be in the region of C$300 million, according to a person familiar with the matter, who asked not to be named because the talks are private. 

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Another person said there are multiple potential buckets of CIB funding which could apply to different aspects of the project, and two people said the numbers are still in flux.

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“We’re in discussions with BC Hydro on a possible investment in the project. We’ll have more to say when an investment decision has been made,” a spokesperson for the CIB said by phone.

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Using that low-interest capital could help blunt price increases for British Columbia residents by reducing the financial shortfall to be met by everyday rate-payers, as well as private industrial backers. Some businesses that want the electricity can commit money now, but others are at an earlier stage of development.

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The NCTL passes through the territory of Indigenous communities, and the BC government recently proposed legislation to allow them to take partial ownership of the infrastructure.

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Carney will announce the transmission line Thursday as part of a second tranche of projects the federal government wants to speed through bureaucratic hurdles and ease the way for more private investment. 

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Other projects expected to be included in the second tranche include:

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The list, which was first reported by the Canadian Broadcasting Corp., will be referred to the Major Projects Office, an entity recently created by Carney’s government to smooth the path to construction. Shares of Canada Nickel have surged nearly 40% over the last two days.

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The first tranche of projects was announced in August and included an expansion of the LNG Canada terminal in BC, a small modular reactor project in Ontario, an expansion of the Port of Montreal, and mining projects in Saskatchewan and BC.

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That announcement also included longer-term infrastructure to be examined, including a new oil pipeline in Alberta tied to a major carbon-capture system, a high-speed rail project in Quebec and Ontario, and a large expansion of the northern Manitoba port of Churchill.

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Carney has said he intends to continually add projects to the list, based on certain criteria such as enhancing Canada’s sovereignty and advancing the economic interests of Indigenous peoples.

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—With assistance from Doug Alexander.

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(Updates with further details on possible financing from sixth paragraph)

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