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Indigenous advocates and business leaders say the federal government's new loan guarantee program will be a massive economic driver for their communities. Pictured is the Trans Mountain laydown yard in Edson, Alta., in 2019. (Terry Reith/CBC)
Downtown Toronto is a long way from most communities where the federal government's Indigenous loan guarantee program will be put into action, but it's where the buzz about the new $5-billion program could be heard this week.
"I'm excited," said Robert Michell, Chief of the Stellat'en First Nation in central B.C., "it changes the game." "It's huge for Indigenous economic reconciliation," said Jaimie Lickers, senior vice-president of Indigenous markets at CIBC. Michell and Lickers were speakers and among 500 Indigenous representatives at the seventh annual First Nations Major Project Coalition (FNMPC) conference, which also attracted 1,100 delegates from companies as well as high-profile politicians. The event was the first time Indigenous leaders from across the country were able to gather and talk about the program, which was announced as part of the 2024 federal budget a week ago. The initiative will guarantee loans that Indigenous communities take on so they can become partners with industry and invest in resource development and energy projects taking place in their territories. Indigenous advocates and business leaders say the guarantees will be a massive economic driver for their communities. Transformational potential With the federal government as a guarantor on loans for Indigenous communities to become equity partners in revenue-creating projects like electrical power, mining or pipelines, many possibilities open up. The loan guarantee program aims to solve a problem created by the Indian Act, which prohibits Indigenous people from using the value of their land, or property built on it, as collateral, a situation that has made it extremely hard to secure financing. For Chief Michell, whose community of 200 people is about two hours west of Prince George, B.C., the program could enable his community to invest in part of the Coastal GasLink pipeline, 120 kilometres of which runs through their territory. It could also allow them to partner in building a wind farm to generate electricity for local industry, a prospect the First Nation has been studying. They're the type of investments that could bring the community a stable source of revenue. "It's transformational," said Chief Michell, because it allows Indigenous communities to have "skin in the game" and be true partners in projects that can support their economic independence. 'Sector-agnostic' approach gives First Nations choice Niilo Edwards, CEO of the FNMPC, says the fact that the program is "sector-agnostic" and allows investment in fossil fuel projects is essential. FNMPC is a non-profit society with over 160 members, all of them First Nations communities. Edwards says some may decide to invest in an oil and gas project that makes economic sense for their people. In his view, letting a project "be judged on the worthiness of its business case" and without sector restrictions is central to how the guarantee program supports Indigenous self-determination.
source: CBC
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