Investing in Indigenous Infrastructure
Tansi Nîtôtemtik,
Last week, the Canada Infrastructure Bank announced the launch of an Indigenous Community Infrastructure Initiative (ICII) aimed to reduce the infrastructure gap between Indigenous and non-Indigenous communities and accelerate investment in Indigenous communities. [1] Currently, it is estimated that this infrastructure gap is between $25 billion and $30 billion.[2]
While this news is certainly promising, especially considering the dire need for basic infrastructure like access to clean drinking water on so many reserves, (see this post and this post) let’s break down what this announcement means.
(Photo Credit: The Star Edmonton (Nov 13, 2016)- Samples of drinking water from North Caribou (Weagamow) Lake First Nation)
The Canada Infrastructure Bank (CIB) is a crown corporation whose purpose is to invest federal funding into different infrastructure projects that generate revenue, serve the public interest, and attract private capital.[3] This February, the CIB set a target to invest at least $1 billion in revenue-generating projects that benefit Indigenous peoples, and the recent funding announcement is a promising step towards this goal. [4]
Historically, Indigenous communities have faced challenges with getting capital needed to finance infrastructure projects due to a lack of funding for down payments. [5] In addition, once financing is secured, Indigenous communities and businesses experience fluctuating interest rates, long processing wait-times, unfavourable loan conditions, and complex funding requirements.[6]The result of these inequities is that Indigenous-led projects to create community infrastructure are often costly and difficult to execute.
The CIB has announced that the ICII will provide low-interest and long-term financing through loans of at least $5 million for up to 80% of total project capital cost. However, the funding will only be provided for revenue-generating products within the CIB priority sectors: green infrastructure, clean power, broadband, public transit and trade and transportation. [7]
For Indigenous sovereignty to truly be recognized, Indigenous communities must be given the opportunity to decide what infrastructure is needed and how to implement these projects. It remains to be seen what types of projects are given funding and whether the funding continues.
Taking a step back, a $1 billion dollar commitment towards the $25-$30 million dollar infrastructure gap is a drop in the bucket. However, the announcement of funding from the CIB to reach this goal is a step in the right direction.
Thanks for reading!
Until next time,
Team ReconciliAction YEG
-----
To receive daily alerts to the blog, sign up here
Be sure to stay up to date on other happenings with ReconciliAction YEG:
Follow us on Twitter at:@ReconciliYEG
Connect with us on Facebook at: www.facebook.com/reconciliActionYEG/
Check out our Instagram at: @reconciliactionyeg
-----
1Canada Infrastructure Bank, “The Canada Infrastructure Bank launches its Indigenous Community Infrastructure Initiative to accelerate new investment and reduce the infrastructure gap” (19 Mar 2021) online: <cib-bic.ca/en/the-canada-infrastructure-bank-launches-its-indigenous-community-infrastructure-initiative-to-accelerate-new-investment-and-reduce-the-infrastructure-gap/>. [CIB Announcement]
2Olivia Stefanovich, “Canada Infrastructure Bank set to launch $1B initiative for Indigenous community projects” (19 Mar 2021) online: CBC News <cbc.ca/news/politics/indigenous-infrastructure-fund-1.5955719>.
3Canada Infrastructure Bank, “About us”, online:<cib-bic.ca/en/about-us/>.
4Ibid.
5CIB Announcement, supra note 1.
6Wendy Stueck, “Infrastructure Bank urged to help Indigenous groups take equity stakes in resource projects” (17 Mar 2021) online: The Globe and Mail <theglobeandmail.com/business/article-infrastructure-bank-urged-to-help-indigenous-groups-take-equity-stakes/>.
7Canada’s Public Policy Forum, “Improving access to capital for Canada’s First Nation communities” (Ottawa: 2016) online (pdf): <ppforum.ca/wp-content/uploads/2018/03/First-Nation_March-8.pdf> at 11.
