Canada’s First Set of Nation-Building Projects Paves Way for Mining, Energy Operations
Canadian Prime Minister Mark Carney has announced the country’s first five nation-building projects.
In March and April, the Build Canada Strong platform was a cornerstone of Carney’s election campaign, which came amid increasing trade tensions between Canada and the US. Among his promises was to create a Major Projects Office (MPO) that would review projects deemed to be in the national interest.
That office was established over the summer, with a release saying it would be headquartered in Calgary and overseen by former TransAlta (TSX:TA,NYSE:TSE) and Trans Mountain CEO Dawn Farrell.
The MPO was created as part of a shift in the regulatory framework for approving infrastructure and resource projects in Canada. Part of that will involve streamlining reviews and assessments, as well as reducing duplication between the federal and provincial governments, an issue that has hindered investment in Canada over the last 20 years.
“One of many studies has shown that the regulatory requirements in Canada have increased by more than 40 percent since 2006 and that’s been suppressing investment growth by 9 percent,” Carney said on Thursday (September 11).
In his statement, the prime minister introduced the first tranche of projects, and suggested the second will be announced before the Canadian Football League’s Grey Cup match, scheduled for November 16.
He also outlined criteria for projects to be covered by the MPO. They must be in the national interest, and must strengthen Canada’s autonomy, resilience and security; they must also have clear benefits for Canadians.
The first group of projects selected by the MPO has already seen significant development.
The prime minister noted that they have already been through extensive consultation with Indigenous communities, and have worked with provincial and territorial governments to meet necessary regulatory standards.
For these, Carney said the goal is for the MPO to get them across the finish line.
“In some cases, they are in the last stages of regulatory approvals. In most cases, there is some aspect of the financing or support packages for the projects that remain to be determined,” he said.
Mining, energy projects highlighted in first tranche
Among the first five projects featured are three involving Canada’s mining and energy sectors:
Additionally, the MPO has committed to supporting the Darlington New Nuclear Project in Clarington, Ontario. This project aims to develop the first small modular reactor in a G7 country.
The MPO will also help speed up the expansion of the Contrecour Terminal container project at the Port of Montreal. This expansion is expected to boost shipping volumes along the St. Lawrence Seaway.
A project that could be included in a future announcement is the Pathways Plus carbon capture project, which the prime minister said will eventually lead to further oil sands development and the construction of a pipeline to reach markets beyond the US. Additionally, Carney said the MPO is looking at upgrades to the Port of Churchill, as well as an Arctic economic and security corridor, a high-speed rail corridor between Toronto and Québec City and Wind West Atlantic Energy, which would provide wind power to the provinces on the Atlantic coast.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.