NEWS RELEASE
April 16, 2024 – Coast Salish Territory (Vancouver) The First Nations Major Projects Coalition (FNMPC) applauds today’s announcement in the Government of Canada’s Budget 2024: Fairness for Every Generation for the establishment of a $5 Billion Indigenous Loan Guarantee Program. If passed, this program will help advance First Nation economic participation through equity ownership on a sector-agnostic basis in all types of major natural resource and energy projects that impact our First Nation members’ lands and traditional territories.
Accessing affordable capital for equity participation in major projects was one of the catalyzing issues that led First Nations to establish FNMPC in 2017. FNMPC’s internal research shows that government loan guarantees can help to reduce interest rates and shorten amortization periods for First Nations that must finance upwards of 100% of their ownership stake using debt. Indigenous loan guarantees are not a new concept. Indigenous loan guarantee programs have already proven effective in Alberta and Ontario, helping to generate more than $1.5 billion in economic benefits for Indigenous nations in those provinces. Having an Indigenous loan guarantee program in place at the federal level helps fill financing gaps faced by Indigenous nations across Canada.
In exercising part of its mandate that enables FNMPC to act as a bridge between our First Nation members and the private sector, FNMPC worked collaboratively with the Business Council of Canada to jointly emphasize the economic benefits that can accrue to all Canadians when Indigenous nations have the right tools, such as government loan guarantees, to become partners in projects with the private sector.
FNMPC’s First Nation members and technical team look forward to continued collaboration with the Government of Canada as the program is rolled out over the coming months. As the federal government says so often: “No relationship is more important that the relationship with Indigenous Peoples.” We look forward to elevating that relationship together.
Quotes:
Chief Sharleen Gale (Fort Nelson First Nation) Chair of the First Nations Major Projects Coalition:
“By committing this backstop of financial support to Indigenous equity participation, the Government of Canada is taking a significant step towards meaningfully advancing economic reconciliation in this country. I would like to applaud Ministers Freeland and Wilkinson, and their respective departments, for their leadership and dedication to this initiative—for helping break down barriers that have historically prevented First Nations from shaping projects and receiving a fair share of their economic returns.”
Goldy Hyder, President and CEO, Business Council of Canada:
Today’s announcement is a testament to the leadership of the First Nations Major Projects Coalition and what can be achieved when the private sector works together with Indigenous partners. The creation of a national Indigenous loan guarantee program will have a meaningful impact on Indigenous communities by unlocking equity partnerships in transformational resource projects. It will also provide a much-needed boost for Canada’s economy as companies work towards a net-zero emissions future.
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Media contact:
Niilo Edwards
Chief Executive Officer
First Nations Major Projects Coalition