The Grays Bay Road and Port project, which stretches from the Northwest Passage to near Kugluktuk, has entered the next stage of development.

SA国际影视传媒淭here are several things going on here in parallel,SA国际影视传媒� said Brendan Bell, CEO for proponent West Kitikmeot Resources Corporation. SA国际影视传媒淸Last year] was really about proponent transfer, from KIA [Kitikmeot Inuit Association] to West Kitikmeot Resources; 2024 is about stakeholder engagement, community engagement, discussing the project with regulators and stakeholders and allowed us to confirm the project scope... We needed to update and confirm project scope, so we did that.

SA国际影视传媒淲e also filed with regulators,SA国际影视传媒� Bell continued. SA国际影视传媒淣ow weSA国际影视传媒檙e waiting to hear back from regulators. They could say one of two things: this should go to environmental assessment SA国际影视传媒� now weSA国际影视传媒檝e recommended it go to environmental assessment (EA). The test really isnSA国际影视传媒檛 significant enough that communities need to understand this and regulators need some time to review materials. So, weSA国际影视传媒檝e recommended it go to EA. WeSA国际影视传媒檙e waiting to hear back from regulators. That will set in motion a two-and-a-half or three-year period of going through the various stage gates of regulation. We hope at the end of that that we come out of the other side of that in 2027 with the certificates or permissions to build the project.

SA国际影视传媒淢eantime, in parallel, we are building the business model, and will soon be out doing a market-testing exercise with investors, so institutional investors, who might invest in the project,SA国际影视传媒� he added.

Funding and costs

Bell explained that 75 per cent of the funding for the Grays Bay Road and Port project comes from the federal government, leaving a quarter for private investment.

SA国际影视传媒淭hat will certainly have to be debt, or lending,SA国际影视传媒� he said. SA国际影视传媒淚f you think about in our own lives, banks are very keen to know if we have a job, or what sort of revenue stream supports that kind of lending, so we are doing the same kinds of things.

SA国际影视传媒淚n this world, itSA国际影视传媒檚 more like, Who can pay the bills to keep the operations going? and Who can provide a revenue stream that would support that 75 per cent [capital expenditure]. We believe that thatSA国际影视传媒檚 security users, so potentially the coast guard, or the military, who are interested in sovereignty patrols, are one potential source of funding.

SA国际影视传媒淭he other is potentially mining companies in the region, the neighbourhood, who might have properties that can be made commercial because of that infrastructure. So those are the potential users we are having discussions with in the next few years to potentially secure those revenue streams to support lending.SA国际影视传媒�

The funding from the federal government is currently supporting the regulatory review phase, which will cost $28 million. The only government funding received so far is that which is required to obtain the project certificate.

SA国际影视传媒淭he funding from the federal government, we wonSA国际影视传媒檛 know till we get a certificate," said Bell. "ThereSA国际影视传媒檚 no point in getting the funding if we donSA国际影视传媒檛 have permission to build the project. So weSA国际影视传媒檙e several years away from any real confirmation of federal funding ultimately on the project cost.SA国际影视传媒�

Bell noted that government funding will not take away from other infrastructure projects, such as housing.

SA国际影视传媒淭he capital cost, the cost to build the project, 75 per cent of that will come from the federal government in the form of a grant. ThatSA国际影视传媒檚 very typical for infrastructure projects in the North. In southern Canada, youSA国际影视传媒檇 imagine capital costs would be more like a third, a third, a third... In Northern Canada that often flips to become 75 per cent federal government, 25 per cent territorial government.

SA国际影视传媒淚n this case, we know that the Government of Nunavut has all kinds of infrastructure spending requirements, on things like housing, very important things, so we donSA国际影视传媒檛 think this can displace things like housing. So we are going out to raise the money privately rather than relying on the territorial government, because we just think the territorial government has too many needs, and not enough funding. We donSA国际影视传媒檛 want to compete with things like housing, which we think are the most important for residents of Nunavut.SA国际影视传媒�

Moving objectives in parallel

SA国际影视传媒淭here are really sort of two objectives in parallel. One is on the regulatory front, making sure communities have input and say, if there are concerns, we mitigate against those. And secondly, working to build a resilient and sustainable business model, and that involves principally sources of revenue required to build the project... we need to confirm scope, and ensure that scope will meet the requirement of the users.SA国际影视传媒�

Bell said it's too early to define the project cost with engineering and design work still incomplete. Prior to the inflation of the past few years, the scope and costing was close to $600 million, unofficially. 

"We say unofficially, because we haven't done the work yet, that it will be nearer $1 billion for the same scope," he said. "We think there will be some slight scope tweaks to incorporate the needs of security users potentially, so certainly you can think more about $1 billion than a half billion dollars on this project."