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Future Hydro Development in Manitoba and Aboriginal Partnerships Presented by E. Wojczynski To APEGM October 21, 2005.

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Presentation on theme: "Future Hydro Development in Manitoba and Aboriginal Partnerships Presented by E. Wojczynski To APEGM October 21, 2005."— Presentation transcript:

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2 Future Hydro Development in Manitoba and Aboriginal Partnerships Presented by E. Wojczynski To APEGM October 21, 2005

3 2 Introduction Hydro Developments and Partners Hydro Developments and Partners Hydros Future Development Objectives Hydros Future Development Objectives Participation Opportunities for Northern Aboriginal People Participation Opportunities for Northern Aboriginal People –Investment –Pre-project Training –Employment –Business Contracts –Environmental Studies Potential Challenges Potential Challenges The Win-Win Potential The Win-Win Potential

4 3 Hydro Developments and Partners

5 4 Transmission lines Waterways influenced by hydro development WINNIPEG SEVEN SISTERS FALLS Generation facilities JENPEG GREAT FALLS BRANDON SELKIRK POINTE DU BOIS SLAVE FALLS MCARTHUR FALLS PINE FALLS GRAND RAPIDS LIMESTONE LONG SPRUCE KETTLE MISSI NOTIGI KELSEY LAURIE RIVER Our Existing System 80% of our generation capacity is in northern Manitoba. Aboriginal communities are located in the vicinity of these projects MW of hydraulic generation 470 MW thermal generation

6 5 Manitoba Hydro Project Plans Existing System 5500 MW Existing System 5500 MW PowerSmart (Customer Efficiency) - To date MW - Planned MW PowerSmart (Customer Efficiency) - To date MW - Planned MW Wind - St Leon MW - Planned MW - studies 1000 MW Wind - St Leon MW - Planned MW - studies 1000 MW Point DuBois redevelopment MW+42MW Point DuBois redevelopment MW+42MW Kelsey Rerunnering MW+86 MW Kelsey Rerunnering MW+86 MW Wuskwatim MW Keeyask MW Conawapa MW Wuskwatim MW Keeyask MW Conawapa MW Bipole III Line and converters MW Bipole III Line and converters MW

7 6 Ontario Clean Energy Transfer Initiative Some sales starting 2006 Some sales starting 2006 Interconnection upgrade to 400 MW Interconnection upgrade to 400 MW New Major Interconnection 2014? 1500 MW New Major Interconnection 2014? 1500 MW PowerSmart, Wind, Wuskwatim, Keeyask, Conawapa PowerSmart, Wind, Wuskwatim, Keeyask, Conawapa Riel/ Winnipeg Henday/ Conawapa Thunder Bay Timmins Sudbury Riel/Winnipeg Henday/ Conawapa Timmins Sudbury Riel/ Winnipeg Henday/ Conawapa Thunder Bay Timmins Sudbury

8 7 Nelson River Thompson Nisichawayasihk Cree Nation Tataskweyak Cree Nation Fox Lake War Lake York Landing Winnipeg Thompson South Indian Lake Proposed Northern Generation and Local Communities Wuskwatim Project 200 megawatts $1 billion Conawapa 1,380 megawatts $6 billion Keeyask Project 620 megawatts $3 billion

9 8 Hydros Future Development Objectives

10 9 Future Development Objectives Reliable and Secure supply for Manitobans Reliable and Secure supply for Manitobans Proactive in protecting the environment Proactive in protecting the environment Strengthen aboriginal relationships Strengthen aboriginal relationships Profitable exports Profitable exports Undertake planning, public consultation, public review and regulatory activities to have the option to construct projects at earliest opportunity for export. Undertake planning, public consultation, public review and regulatory activities to have the option to construct projects at earliest opportunity for export.

11 10 Aboriginal Partnerships: Hydros Objectives Maximize Aboriginal support and advocacy for commercially viable and environmentally acceptable projects to produce power for export. Maximize Aboriginal support and advocacy for commercially viable and environmentally acceptable projects to produce power for export. Provide practical capacity building opportunities for Aboriginal people. Provide practical capacity building opportunities for Aboriginal people. Broaden public support for projects. Broaden public support for projects. Manage risks in the regulatory processes. Manage risks in the regulatory processes. Gain support and allies in export markets. Gain support and allies in export markets. Treat adversely affected parties fairly and reasonably with or without partnerships. Treat adversely affected parties fairly and reasonably with or without partnerships.

12 11 Participation Opportunities for Northern Aboriginal People 1.Investment 2.Pre-project training 3.Employment 4.Business contracts 5.Environmental Studies

13 12 Investment Wuskwatim/Keeyask Projects Projects to be owned by limited partnerships. Projects to be owned by limited partnerships. Manitoba Hydro is the general partner in a limited partnership with communities and Manitoba Hydro as limited partners. Manitoba Hydro is the general partner in a limited partnership with communities and Manitoba Hydro as limited partners. Communities in the vicinity given an opportunity to invest in projects with financial assistance from Hydro. Communities in the vicinity given an opportunity to invest in projects with financial assistance from Hydro. Communities must invest a portion of their own cash and the balance may be borrowed from Manitoba Hydro. Communities must invest a portion of their own cash and the balance may be borrowed from Manitoba Hydro. communities own a portion of the partnership, dependent on the amount of their cash invested. communities own a portion of the partnership, dependent on the amount of their cash invested. Up to 33% for Wuskwatim and 25% for Keeyask. Up to 33% for Wuskwatim and 25% for Keeyask.

14 13 Pre-project Training Wuskwatim/Keeyask Cornerstones Cornerstones –Aboriginal-led –Community-based where practical –Retention supports –On-the-job training Critical success factors Critical success factors –Sufficient funding, multi-year comprehensive approach –Industry partnerships and leveraging community projects for on the-job-training experience –Links to employment and business opportunities.

15 14 Training Participants Northern Aboriginal Organizations Nisichawayasihk Cree Nation (NCN) Nisichawayasihk Cree Nation (NCN) Tataskweyak Cree Nation (TCN) Tataskweyak Cree Nation (TCN) War Lake Cree Nation War Lake Cree Nation Fox Lake Cree Nation Fox Lake Cree Nation York Factory First Nation York Factory First Nation Manitoba Keewatinook Ininew Okimowin (MKO) Manitoba Keewatinook Ininew Okimowin (MKO) Manitoba Métis Federation (MMF) Manitoba Métis Federation (MMF)

16 15 Employment Approach Employment success requires an integrated approach to recruitment, training, retention and advancement to assist Aboriginal people Employment success requires an integrated approach to recruitment, training, retention and advancement to assist Aboriginal people –As they develop competencies for project employment (pre-project training) –As they apply for work –As they are referred to the contractor for employment –As they are hired and placed on the job –As they respond to construction worksite and camp challenges –As they participate in on-the-job training –As they are laid off and called back to work

17 16 Aboriginal Employment Approach Tools to achieve employment objectives Tools to achieve employment objectives –Master collective agreement (BNA), with option for special provisions for each project –Special tender specifications related to Aboriginal employment –Aboriginal Direct negotiation or restricted tender work packages Critical success factors Critical success factors –Employment preference –Retention support.

18 17 Business Contract Opportunities Construction contracts on major projects identified for direct negotiation or restricted tender with northern Aboriginal businesses Construction contracts on major projects identified for direct negotiation or restricted tender with northern Aboriginal businesses –Service contracts Cross Cultural Training Camp maintenance services Catering Security –Infrastructure contracts Access Road Temporary camp Main camp –Other contracts Painting On-site hauling Forebay clearing

19 18 Business Contract Opportunities Ongoing operation and maintenance contracts Ongoing operation and maintenance contracts –Plant, dam and dike maintenance –Special projects (e.g. plant-related works, environmental enhancement) Conditions Conditions –Standards of quality, cost and schedule must be met in direct negotiation or restricted tender –Joint ventures with non-northern Aboriginal- owned businesses are okay as long as an Aboriginal partner plays a meaningful role.

20 19 Environmental Studies Community consultations as part of studies and assessment. Community consultations as part of studies and assessment. Traditional knowledge incorporated into assessment. Traditional knowledge incorporated into assessment. Community involvement and employment opportunities. Community involvement and employment opportunities.

21 20 Potential Challenges

22 21 Challenges Power market conditions/opportunities. Power market conditions/opportunities. Transmission options and schedules Transmission options and schedules Generation options and schedules. Generation options and schedules. Increased number of communities participating increases complexity. Increased number of communities participating increases complexity. Aboriginal participation Aboriginal participation –Historical grievances –Community capacity and external consultants –Long term relationship –Cost and schedule impacts Environmental review process/products Environmental review process/products –Ecological monitoring –Time and cost and uncertainty –Evolving environmental standards

23 22 The Win-Win Potential

24 23 The Win-Win Potential TCN A Keeyask Partner Victor Spence, TCN Manager of Future Development

25 24 The Win-Win Potential NCN Wuskwatim Partner Chief Jerry Primrose, Nisichawayasihk Cree Nation

26 25 New Era Increased global environmental awareness Increased global environmental awareness Growth in North America demand for energy Growth in North America demand for energy Higher energy prices Higher energy prices New way of Hydro doing business New way of Hydro doing business New Hydro development redesigned to respect environmental considerations New Hydro development redesigned to respect environmental considerations Aboriginal partnership in new hydro to provide benefits to local people Aboriginal partnership in new hydro to provide benefits to local people Potential for more new developments in Manitoba, much benefit for all Manitobans and local aboriginal people. Potential for more new developments in Manitoba, much benefit for all Manitobans and local aboriginal people.

27 26 Questions?


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