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Community Agreements

Community Agreements. Deh Cho Bridge Project. July, 2010. Summary of Agreements. Concession Agreement. Sets out Deh Cho Bridge Corporation (DCBC) responsibility for the design, construction, operation and maintenance of the Deh Cho Bridge over a 35 year concession period.

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Community Agreements

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  1. Community Agreements Deh Cho Bridge Project July, 2010

  2. Summary of Agreements

  3. Concession Agreement • Sets out Deh Cho Bridge Corporation (DCBC) responsibility for the design, construction, operation and maintenance of the Deh Cho Bridge over a 35 year concession period. • Outlines the terms under which the community of Fort Providence, through DCBC, would benefit from the Deh Cho Bridge project.

  4. Letter Agreement • A negotiated end to Concession Agreement, resulting in GNWT control and ownership of the bridge project and related works • Provides for GNWT management of the legal defence to claims against DCBC • Indemnifies DCBC shareholders against claims and losses arising from claims • Gives GNWT access to DCBC equity • Addresses issues of contracts and claims necessary for the good of the project

  5. Community Opportunities and Involvement Agreement • Involvement Grant of $8,000 per month until March 2012 to promote Community involvement in the Bridge project. • Annual grant of $200,000 to the community for 35 years beginning April 1, 2012. Grant for the purpose of creating community benefits and economic opportunities related to the Bridge.

  6. Rationale for New Agreements • Transition to GNWT management and control of the Deh Cho Bridge project required termination of the Concession Agreement • Negotiated settlement of the issues related to termination determined to be best for the Project • Process for management of claims was needed to avoid construction delays • Honouring of GNWT commitment to the Community that it would receive opportunities from the Project.

  7. Benefits to the Community • Letter Agreement • Avoids risk that Concession Agreement could be terminated for cause, with no return to Community • Indemnification for claims for DCBC shareholders • Opportunities and Involvement Agreement • Financial resources to develop economic opportunities associated with the Deh Cho Bridge for 35 years

  8. Benefits to the GNWT • Allows GNWT to assume full control over Project • Elimination of legal uncertainty and risks related to termination of Concession Agreement • Elimination of requirement to provide a return on DCBC equity, saving $63,000+/year • Savings in insurance costs of $300,000/year • Reduction in administration costs, saving an estimated $50,000/year • Reduced capital and operational costs related to the toll system.

  9. Benefits to the Northwest Territories • Tourism development in Fort Providence can be expected to enhance tourism in nearby communities • Enhanced Community economic activity will benefit the economy of the Northwest Territories overall.

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