FEDERAL FUNDING ENABLES LONG-TERM ECONOMIC EXPANSION OF FORT MCKAY FIRST NATION
FORT MCMURRAY, ALBERTA - The Honourable Robert D. Nault, Minister of Indian and Northern Affairs Canada, announced an investment of $1.5 million in federal funding to assist the Fort McKay First Nation of northeastern Alberta in expanding its long-term economic development opportunities.
The Government of Canada is fulfilling its commitment to work in partnership with the First Nations of Canada on a wide range of initiatives to accelerate progress in Aboriginal economic development," said Minister Nault.
"One of our goals is to eliminate obstacles and foster opportunities for economic development and long-term self-sufficiency."
In partnership with the private sector, the Fort McKay First Nation is planning to establish an industrial and commercial centre in northeastern Alberta for companies servicing the oil sands industry. Strategically located 60 kilometres north of Fort McMurray, Alberta, in the geographic centre of the oils sands development, the industrial park will take advantage of an estimated $1.5 billion in new investment this year by the petroleum industry and an estimated $50 billion over the next 12 years.
The federal funding, part of a total $3.4 million project, will be used to provide infrastructure such as electricity, natural gas, telephone, high speed Internet and non-potable water to the industrial park. Fort McKay and other First Nations will operate businesses located in the park, providing them the opportunity to establish long-term relationships with private industry contracting goods and services to the oil sands on a one-on-one basis or in joint ventures. First Nations and their members in the Fort McMurray area will benefit from opportunities created by the tenants in the park.
"This project is a great example of how government, industry and First Nations can work together to promote self-reliance among First Nation members and to expedite the path toward independence," said Chief Jim Boucher of the Fort McKay First Nation.
The 38 hectare (80 acre) park will offer lease clients serviced industrial land in lots ranging between two to three hectares. The lot size can be reduced or enlarged to suit the needs of potential tenants.
As there currently exists no industrial subdivision north of the City of Fort McMurray, this industrial park is an opportunity for Fort McKay First Nation to capitalize on a market niche to help meet the current needs of contractors and companies looking for industrial sites. The Regional Municipality of Wood Buffalo, in which the City of Fort McMurray is located, has approved a new industrial category for this subdivision.
Many of the companies expressing interest in the industrial park will maintain their base operations in Fort McMurray, while establishing branch or maintenance operations in the new industrial park, ensuring the market potential of this project is based on oil sands expansion rather than the dislocation of existing businesses.