Quebec's new Liberal government is rapidly giving physical and legal shape to its mammoth $80-billion Plan Nord resource development initiative.
Since taking office in the spring, they've invested $50 million in a liquefied natural gas plant to supply northern mines, provided $25 million for a study of rail line feasibility to the Labrador Trough and announced plans to extend Hwy 167 into north-central Quebec. Most importantly, on September 30 they tabled Bill 11, which would create the Société du Plan Nord, a Crown corporation to manage resource and infrastructure development in the vast region above the 49th parallel.
Far from creating an additional level of bureaucracy, the Société is intended to streamline activities across the 14 ministries with responsibilities touching on northern development, says Daniel Bénay of McCarthy Tétrault LLP. “The ultimate result we will only find out several years from now,” Bénay says, “but I would give them the benefit of the doubt.”
Plan Nord calls for some $47 billion in phased energy development by Hydro Quebec, backed by industry agreements and supporting an expected $33 billion in mining and energy projects over 20 years.
Bénay says the gestation of the Société won't delay projects, which are mostly on hold due to weak commodity prices and lack of infrastructure. Bill 11 would create a board of directors, appointed by the government, who would choose a chairperson and CEO and build a staff to oversee development. The first activity of the Société would be to submit a northern development strategy for government approval.
Among its duties, the Société would uphold sustainable development principles, although Bénay says it would not bypass the established system of environmental review. It would also ensure equitable terms for commercial access to infrastructure projects, such as roads and utilities, which might be built and owned by one company or a joint venture and shared by another industrial developer in the same area, he says.
The Société would name any necessary number of members to an Assembly of Partners – a council of industry executives and northern residents – who would provide non-binding advice. Bénay says the objective of the Assembly is to make northern development “inclusive and transparent” and that partisan appointments would be “counterproductive.”
Bill 11 also directs the Crown corporation to establish a marketing office, which would assist Quebec companies interested in supplying goods and services to public and private-sector developments.
Plan Nord was originally proposed by Premier Jean Charest's government before its defeat in 2012 and officially reinstated this year by the current government led by Philippe Couillard. While insisting on political neutrality, Bénay called Bill 11 “a clear signal of the willingness of the government to revive Plan Nord.”
Since taking office in the spring, they've invested $50 million in a liquefied natural gas plant to supply northern mines, provided $25 million for a study of rail line feasibility to the Labrador Trough and announced plans to extend Hwy 167 into north-central Quebec. Most importantly, on September 30 they tabled Bill 11, which would create the Société du Plan Nord, a Crown corporation to manage resource and infrastructure development in the vast region above the 49th parallel.
Far from creating an additional level of bureaucracy, the Société is intended to streamline activities across the 14 ministries with responsibilities touching on northern development, says Daniel Bénay of McCarthy Tétrault LLP. “The ultimate result we will only find out several years from now,” Bénay says, “but I would give them the benefit of the doubt.”
Plan Nord calls for some $47 billion in phased energy development by Hydro Quebec, backed by industry agreements and supporting an expected $33 billion in mining and energy projects over 20 years.
Bénay says the gestation of the Société won't delay projects, which are mostly on hold due to weak commodity prices and lack of infrastructure. Bill 11 would create a board of directors, appointed by the government, who would choose a chairperson and CEO and build a staff to oversee development. The first activity of the Société would be to submit a northern development strategy for government approval.
Among its duties, the Société would uphold sustainable development principles, although Bénay says it would not bypass the established system of environmental review. It would also ensure equitable terms for commercial access to infrastructure projects, such as roads and utilities, which might be built and owned by one company or a joint venture and shared by another industrial developer in the same area, he says.
The Société would name any necessary number of members to an Assembly of Partners – a council of industry executives and northern residents – who would provide non-binding advice. Bénay says the objective of the Assembly is to make northern development “inclusive and transparent” and that partisan appointments would be “counterproductive.”
Bill 11 also directs the Crown corporation to establish a marketing office, which would assist Quebec companies interested in supplying goods and services to public and private-sector developments.
Plan Nord was originally proposed by Premier Jean Charest's government before its defeat in 2012 and officially reinstated this year by the current government led by Philippe Couillard. While insisting on political neutrality, Bénay called Bill 11 “a clear signal of the willingness of the government to revive Plan Nord.”
Lawyer(s)
Daniel Bénay