Future Hydro Development in Manitoba and Aboriginal PartnershipsFuture Hydro Development in Manitoba and Aboriginal Partnerships

Presented by E. WojczynskiTo APEGM October 21, 2005

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Introduction

Hydro Developments and PartnersHydro Developments and Partners

Hydro’s Future Development ObjectivesHydro’s Future Development Objectives

Participation Opportunities for Northern Participation Opportunities for Northern Aboriginal PeopleAboriginal People

– Investment– Pre-project Training– Employment– Business Contracts– Environmental Studies

Potential ChallengesPotential Challenges

The Win-Win PotentialThe Win-Win Potential

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Hydro Developments and Partners

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Transmission lines

Waterways influenced by hydro development

WINNIPEG

SEVEN SISTERS FALLS

Generation facilities

JENPEG

GREAT FALLS

BRANDONSELKIRK

POINTE DU BOISSLAVE 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.

5000 MW of hydraulic generation470 MW thermal generation

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Manitoba Hydro Project Plans

Existing System 5500 MWExisting System 5500 MW

PowerSmart (Customer Efficiency)PowerSmart (Customer Efficiency)- To date - To date 20042004 283 MW283 MW- Planned - Planned 2019 2019 495 MW495 MW

Wind - St LeonWind - St Leon 20062006 100 MW100 MW- Planned - Planned 20092009 250 MW250 MW- studies - studies 1000 MW1000 MW

Point DuBois redevelopmentPoint DuBois redevelopment 20112011 78 MW78 MW +42MW+42MW

Kelsey RerunneringKelsey Rerunnering 20112011 224MW224MW +86 MW+86 MW

WuskwatimWuskwatim 20112011 200 MW200 MW Keeyask Keeyask 2013+2013+ 620 MW 620 MW ConawapaConawapa 2017+2017+ 1380 MW1380 MW

Bipole III Line and convertersBipole III Line and converters 20172017 2000 MW2000 MW

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Ontario Clean Energy Transfer Initiative

Some sales starting Some sales starting 2006 2006

Interconnection upgrade Interconnection upgrade 2008 2008200 to 400 MW200 to 400 MW

New Major Interconnection New Major Interconnection 2014?2014?1500 MW1500 MW

PowerSmart, Wind, Wuskwatim, Keeyask, PowerSmart, Wind, Wuskwatim, Keeyask, ConawapaConawapa

Riel/Winnipeg

Henday/Conawapa

Thunder Bay

Timmins

Sudbury

Riel/Winnipeg

Henday/Conawapa

Timmins

Sudbury

Riel/Winnipeg

Henday/Conawapa

Thunder Bay

Timmins

Sudbury

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Nelson River

ThompsonThompson

NisichawayasihkCree Nation

NisichawayasihkCree Nation

TataskweyakCree Nation

TataskweyakCree Nation

Fox LakeFox Lake

War LakeWar LakeYork LandingYork Landing

Winnipeg

Thompson

• South Indian Lake• 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

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Hydro’s Future Development Objectives

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Future Development Objectives

Reliable and Secure supply for Reliable and Secure supply for ManitobansManitobans

Proactive in protecting the Proactive in protecting the environmentenvironment

Strengthen aboriginal Strengthen aboriginal relationshipsrelationships

Profitable exportsProfitable exports

Undertake planning, public Undertake planning, public consultation, public review consultation, public review and regulatory activities to have and regulatory activities to have the option to construct projects at the option to construct projects at earliest opportunity for export.earliest opportunity for export.

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Aboriginal Partnerships: Hydro’s Objectives

Maximize Aboriginal support and Maximize Aboriginal support and advocacy for commercially viable advocacy for commercially viable and environmentally acceptable and environmentally acceptable projects to produce power for export.projects to produce power for export.

Provide practical capacity building Provide practical capacity building opportunities for Aboriginal people.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 Treat adversely affected parties fairly and reasonably with or without partnerships.or without partnerships.

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Participation Opportunities for Northern Aboriginal People

1.1. InvestmentInvestment2.2. Pre-project trainingPre-project training3.3. EmploymentEmployment4.4. Business contractsBusiness contracts5.5. Environmental StudiesEnvironmental Studies

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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 Manitoba Hydro is the general partner in a limited partnership with communities and Manitoba Hydro as partnership with communities and Manitoba Hydro as limited partners.limited partners.

Communities in the vicinity given an opportunity to Communities in the vicinity given an opportunity to invest in projects with financial assistance from Hydro.invest in projects with financial assistance from Hydro.

Communities must invest a portion of their own cash and Communities must invest a portion of their own cash and the balance may be borrowed from Manitoba Hydro.the balance may be borrowed from Manitoba Hydro.

communities own a portion of the partnership, dependent on communities own a portion of the partnership, dependent on the amount of their cash invested.the amount of their cash invested.

Up to 33% for Wuskwatim and 25% for Keeyask.Up to 33% for Wuskwatim and 25% for Keeyask.

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Pre-project Training Wuskwatim/Keeyask

CornerstonesCornerstones

– Aboriginal-led– Community-based where practical– Retention supports– On-the-job training

Critical success factorsCritical 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.

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Training ParticipantsNorthern Aboriginal Organizations

Nisichawayasihk Cree Nation (NCN)Nisichawayasihk Cree Nation (NCN)

Tataskweyak Cree Nation (TCN)Tataskweyak Cree Nation (TCN)

War Lake Cree NationWar Lake Cree Nation

Fox Lake Cree NationFox Lake Cree Nation

York Factory First NationYork Factory First Nation

Manitoba Keewatinook Ininew Okimowin (MKO)Manitoba Keewatinook Ininew Okimowin (MKO)

Manitoba Métis Federation (MMF)Manitoba Métis Federation (MMF)

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Employment Approach

Employment success requires an integrated approach to recruitment, Employment success requires an integrated approach to recruitment, training, retention and advancement to assist Aboriginal peopletraining, 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

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Aboriginal Employment Approach

Tools to achieve employment objectivesTools 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 factorsCritical success factors

– Employment preference– Retention support.

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Business Contract Opportunities

Construction contracts on major projects Construction contracts on major projects identified for direct negotiation or restricted identified for direct negotiation or restricted tender with northern Aboriginal businesses 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

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Business Contract Opportunities

Ongoing operation and maintenance contractsOngoing operation and maintenance contracts

– Plant, dam and dike maintenance– Special projects (e.g. plant-related works,

environmental enhancement) ConditionsConditions

– 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.

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Environmental Studies

Community consultations as part of studies Community consultations as part of studies and assessment.and assessment.

Traditional knowledge incorporated into Traditional knowledge incorporated into assessment.assessment.

Community involvement and employment Community involvement and employment opportunities.opportunities.

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Potential Challenges

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Challenges

Power market conditions/opportunities.Power market conditions/opportunities.

Transmission options and schedulesTransmission options and schedules

Generation options and schedules.Generation options and schedules.

Increased number of communitiesIncreased number of communitiesparticipating increases complexity.participating increases complexity.

Aboriginal participationAboriginal participation– Historical grievances– Community capacity and external consultants– Long term relationship– Cost and schedule impacts

Environmental review process/productsEnvironmental review process/products– Ecological monitoring– Time and cost and uncertainty– Evolving environmental standards

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The Win-Win Potential

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The Win-Win Potential

TCN

A Keeyask Partner

Victor Spence, TCN Manager of Future Development

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The Win-Win Potential

NCN

Wuskwatim

Partner

Chief Jerry Primrose, Nisichawayasihk Cree Nation

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New Era

Increased global environmental awarenessIncreased global environmental awareness

Growth in North America demand for energyGrowth in North America demand for energy

Higher energy pricesHigher energy prices

New way of Hydro doing businessNew way of Hydro doing business

New Hydro development redesigned to respect New Hydro development redesigned to respect environmental considerationsenvironmental considerations

Aboriginal partnership in new hydro to provide Aboriginal partnership in new hydro to provide benefits to local peoplebenefits to local people

Potential for more new developments in Manitoba, Potential for more new developments in Manitoba, much benefit for all Manitobans and local aboriginal much benefit for all Manitobans and local aboriginal people.people.

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Questions?