Socio-Economic Impact Assessment

Transcription

1 ENOKSEOT HOLDINGS LTD. Socio-Economic Impact Assessment Iqaluit Hydro Electric Development Project January 31,

2 TABLE OF CONTENTS I. INTRODUCTION...3 II. III. EXECUTIVE SUMMARY.. 7 MAIN REPORT 11 a. Description of Impacted Communities 10 b. Background Assumptions to Report...15 c. Key Resources..18 i) Public Participation Methods and Process 18 ii) iii) iv) Project Development Impact Scenarios.26 General impact of construction of hydro-generation facilities 34 Potential Impacts: Iqaluit, Local, Regional Health and Well-Being Business Opportunities Employment Opportunities Investment Opportunities Population Sustainability Services and Infrastructure Social Services Services and Infrastructure Education Services and Infrastructure Housing Availability & Affordability Services and Infrastructure Physical Infrastructure Land Uses, and Harvesting Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Appendix 9 Appendix 10 Appendix 11 Socio-Economic Impact Assessment Questionnaire For Community Feedback Public Consultation Communications Results of Socio-Economic Impact Assessment Survey Sample Excerpt of Socio-Economic Monitoring Agreement Overview of Hydroelectric Operations and Maintenance Overview of Hydroelectric Operations and Maintenance Pending Consultation Meetings Transcripts of Selected Community Meetings Enokseot Holdings Ltd. Profile Employment Summary of GN Public Service Review Inuit Accord on Human Resources Development 2

3 I. INTRODUCTION The following introduction is designed to help you to get an overall idea of what a socioeconomic impact assessment is, the purpose of the assessment and what the information in the report covers in a snapshot. What is a Socio-Economic Impact Assessment (SEIA)? Simply put, a socio-economic impact assessment is a study to determine how a proposed development project will affect or change the lives of current or future residents of a community or geographic area. SEIA s are most often part of a larger Environmental Impact Statement which is the complete study of the combined information gathered from a socio-economic impact assessment as well as an environmental impact assessment (EIA). Purpose of this report The focus and scope of this report is based on merely the aspects of the socio-economic aspects which will be shared with those conducting the EIA to further refine areas of study. The SEIA process involved collecting baseline data (available existing information) about the socio-economic conditions combined with information gathered through participation from stakeholders (land users, hunters, cabin owners, business owners etc.) by means of interviews, focus groups and public meetings. Participant s feedback and other data collected were designed to provide information to assist in the overall decision to consider the following scenarios: There were four development scenarios to consider during the assessment process: 1. A decision to not proceed with hydro-electric development for Iqaluit 2. A decision to proceed with hydro-electric development at the Qikiqgijaarvik (Jaynes Inlet) site 3. A decision to proceed with hydro-electric development at one of Akulikutaq or Tungatalik (Armshow River) sites 4. A decision to proceed with hydro-electric development at the Kangalait (Cantley Bay) site Identification and development of positive and negative scenarios for each option above over three "impact" time frames: 1. The lead up and construction period (5 years) 2. The period immediately after construction (5 years) 3. The 50 year period after construction 3

4 This study was to focus specifically on the following. I. The potential socio-economic and cultural impacts of investing I not investing in one or more hydroelectric generating stations and associated transmission lines to supply electrical energy to Iqaluit as described in these options: II. The impact of each option on the social and economic lives of Iqalungmiut, Nunavummiut, and impacted communities, directly or indirectly This study was conducted by Enokseot Holding Ltd. of Iqaluit, Nunavut as contracted by Qulliq Energy Corporation. QEC and hydro Qulliq Energy Corporation (QEC) is a Crown Corporation owned 100% by the Government of Nunavut (GN). The corporation was originally established in 2001 as Nunavut Power Corporation (NPC) under the Nunavut Power Utilities Act. It was renamed Qulliq Energy Corporation and the Nunavut Power Utilities Act was renamed the Qulliq Energy Corporation Act as the result of legislation passed in March 2003 which also broadened the corporation s mandate to respond to a range of energy use and conservation issues in Nunavut. Qulliq Energy Corporation operates several divisions, some using registered trade names Nunavut Power Qulliq Energy and Nunavut Energy Centre. These are not separate corporations. They all share the same reporting structure and Board. QEC, under the Nunavut Power trade name, generates and distributes electrical power to Nunavummiut through the operation of twenty-seven (27) diesel generation plants in 25 communities. Currently, 100% of the electricity generated in Nunavut is done through the burning of imported fossil fuels, and QEC uses nearly 25 per cent of the diesel fuel imported into Nunavut annually. Recognizing the inevitable increase in world prices for fossil fuels, as well as the environmentally and ecologically harmful effects of burning diesel fuel, QEC has embarked on exploring the feasibility of possibly developing a hydro-electric power generating facility in Nunavut. It was concluded from a cost benefit analysis that it would be most beneficial to first explore a potential facility to serve the territory s largest community, Iqaluit. QEC is in the midst of conducting further in-depth feasibility studies concentrating on 3 possible locations for the possibly development of hydro-electric power generating facility. Those locations include Armshow Long (2 sites), Jayne s Inlet and Cantley Bay. These studies includes Environmental; Engineering; Social-Economic and Impact Assessment. For additional information on the Iqaluit Hydro Project is available on the internet at the following website 4

5 The objectives of QEC include: a) to generate, transform, transmit, distribute, deliver, sell and supply energy on a safe, economic, efficient and reliable basis; and b) to plan and provide for Nunavut's long term needs for affordable energy, taking into consideration Nunavut's desire to enhance energy self reliance and to conserve energy and energy resources. c) to undertake programs to maximize efficiency of fuel and other energy consumption and to provide advice and information to consumers to enable fuel and energy conservation; d) to undertake and other activity ordered or authorized by order of the Commissioner in Executive Council. 5

6 Land uses and harvesting The Inuit people have been given life from the lands they have inhabited for thousands of years. It has served Inuit in every aspect of life and the very land itself has been named from Nuna the land. For all its harshness and unforgiving elements it has still provided everything from which to live. Shelter, warmth and drinking water come from snow, the land provides wildlife and berries, while the waters of the lakes, rivers and the ocean provides the greatest bounty of all. This great bounty provides food and furs, as well as the source for tools and oil to make the light and heat for the Qulliq. As the people moved outward and adapted to the land around them they learned to read all the signs it provided to them to find their way to great hunting and fishing areas and always lead them home. The threats to this bond and the very land itself are growing at an alarming rate with the greatest threat of all being the effects of climate change. Climate changes are affecting everything from the ice flows and inland water levels to its effects on migration habits. Adapting to these rapid changes is likely to be the greatest challenge to face Inuit in generations, possibly ever. The ongoing studies being done on climate change in the north and around the globe are intensifying and is beyond the scope of this report but it will have an impact on the socio-economic future of Nunavut. The sooner populations are using renewable sources of energy the faster we can stop putting further pressure on the environment. However, even with renewable sources of energy in the north, we must be diligent to ensure that Nunavummiut can still use the land in traditional ways. It is with this need in mind that we look at how local population in and around Iqaluit use and harvest the land and its resources. It is important to keep in mind when reading this report that much information about the projected impacts on the land, lakes, rivers and ocean will affect the animals, fish and other marine life. With this information only then will the area population and land users offer a conclusive opinion? It is the unique linkage between the people the land and the wildlife that makes the usual partially overlapping process of SEIA and EIA an almost conjoined process in the case of the Inuit. As part of the ongoing process of community consultation and involvement the data that comes from environmental assessments will need to be provided to both the public and involved in further socioeconomic analysis to get the true picture as well as an endorsement from the community and land users. 6

7 II. EXECUTIVE SUMMARY The following report has been written in response to a request put forth by Qulliq Energy Corporation (QEC) to conduct a Socio-Economic Impact Assessment for possible hydro-electric development for the City of Iqaluit. This report has now been conducted by Enokseot Holdings Ltd. Recognizing the inevitable increase in world prices for fossil fuels, as well as theenvironmentally and ecologically harmful effects of burning diesel fuel, QEC has embarked on exploring the feasibility of developing a hydro-electric power generating facility in Nunavut. It was recommended from a cost benefit analysis that it would be most beneficial to first explore potential facility development to serve the territory s largest community, Iqaluit. QEC is in the midst of conducting further in-depth feasibility studies concentrating on three possible locations for the possibe development of a hydro-electric power generating facility. Those locations include Armshow River (2 sites), Jayne s Inlet and Cantley Bay. These further studies include Environmental, Engineering and Socio-Economic and Impact Assessment (SEIA). The report submitted here is specific to the Socio-Economic and Impact Assessment portion of QEC studies being conducted. This initial Socio-Economic Impact Assessment is designed as the initial phase of a further ongoing process with the goal of determining the potential impacts on the people in and around the Iqaluit area, including the Kimmirut region. The potential impacts are examined as to whether they will have a positive or negative effect on a variety of social and economic factors. Some of these potential impacts are as follows: Land use (Hunting, Fishing, Recreation, etc.) Health and well being Population sustainability Affect on traditional lifestyles Business and investment opportunities Employment opportunities Services and infrastructure Income and lifestyle The SEIA presented here will explain in further detail projections of potential positive and negative impacts over three impact time frames related to a hydro-electric development project : 5 years lead-up to construction, the 5 year post construction and an estimated 50 year operational time. 7

8 Nunavut and Nunavummiut have a challenging road ahead to meet the expectations defined in the Pinasuaqtavut (Government of Nunavut, 2004). QEC supports and shares these goals of: Inuuqatigiittiarniq: Healthy Communities Pijarnirniqsat Katujjiqatigiittiarnirlu: Simplicity and Unity Namminiq Makitajunnarniq: Self-Reliance Ilippallianginnarniq: Continuing Learning Specifically, these goals can be further supported through a future with less dependence on fossil fuels and more locally generated renewable energy. Further to the goals of self-reliance and continued learning, the report will show preferred opportunities to a local and regional Inuit population as mandated by the Land Claims Agreement. Improvements to communities can be supported and implemented as defined in an Inuit Impact Benefit Agreement (IIBA) to be negotiated as noted in Land Claims Agreement. The report also highlights the potential negative impacts that can result from an influx of outside influences, some of which may have harmful effects to local culture over time. Throughout the SEIA report we will describe the public communication and participation efforts to inform local residents. These efforts include radio, local newspapers, establishment of a website and development of an SEIA questionnaire. A number of public meetings were held in both English and Inuktitut for land users, cabin owners, elders, business owners, hunters and trappers, government, the general public and citizens of the Kimmirut region. At each of these meetings, the SEIA questionnaire was distributed for community feedback. All communication opportunities were intended to involve and inform residents and land users. Although the rate of response by return of completed questionnaires was relatively low, we gained the impression of strong interest in this development from the majority of meeting attendees, with no strong objections to QEC plans to date. Generally, the public would welcome further details on environmental impacts to feel well informed and voice a stronger opinion. Some final thoughts are summarized and included on the final page of this report with complete SEIA questionnaire results found in Appendix 3. Public opinion is eager for details of the Environmental Assessment, specifically the potential impacts to wildlife, fishing, hunting, the lands, lakes, and rivers. The other key environmental factor that will strongly impact the socio-economic conditions in the long term relate to climate change and its significant ramifications on northern population and day to day life in the region. A great desire for more environmental impact information was expressed throughout all public consultation. The public s thirst and concern for environmental impact details was emphasized in all responses, both in public meetings and in responses to the SEIA questionnaire. The level of public interest in these topics was significant and consistent. It is recommended that future studies and public participation strive to inform the public to the best extent possible on all environmental factors related to a hydro-electric development project in the region. 8

9 Public participation and the development of human resources are vital to improving the future economic outlook for Iqaluit and Nunavut. This means improving the skills and education of local and regional Inuit by way of job training, improved funding systems for education, language, culture and literacy. Each of these activities can contribute to a more prosperous, stronger region leading to a self reliant, self-sustaining future for all Nunavummiut (Nunavut Economic Forum, 2005). The SEIA report has also illustrated some perceived negative impacts that can result from a hydro-electric development project. For example the hydro construction project could bring a strain to an already strained local infrastructure such as housing, waste management systems, schools and health services. With proper planning, support of QEC, local government, territorial government, Inuit cultural organizations and local residents, strain on infrastructure can be minimized. A sustainable combination of commitment and cooperation could be outlined in a Socio Economic Monitoring Agreement (SEMA) to ensure that all valued components of the local socio economic landscape could be protected and public consultation is assured. Additional encouragement of social development, maintenance of traditional knowledge and culture, and a commitment to Inuit and Nunavummiut hiring and business contracting priorities could all be improved over time through a SEMA program (Refer to Appendix 4). The socio economic impact assessment process must continue through feasibility and planning stages of a hydro-electric development project to encourage and engage further public participation. Such a project can hold much historic significance and provide a symbol of great pride for all Nunavummiut when all aspects of sustainable development are incorporated. Therefore, it is recommended that any proposed construction proceeds in such a way that is responsible to the public and respectful to the land while contributing to the overall vision of a stronger and self-sustaining Nunavut. 9

10 III. MAIN REPORT a. Description of Impacted Communities (i) City of Iqaluit The City of Iqaluit encompasses square kilometers, as outlined in the Nunavut Land Claims Agreement (1992); which allows for a significant expansion of the built up area. There are two protected areas, Sylvia Grinnell Territorial Park Reserve (existing and proposed) west of the populated area and to the east of the populated area is the Watershed Protection Area around Lake Geraldine, the source of drinking water for the City of Iqaluit. In addition, the region is surrounded by several territorial parks, including Katannilik Territorial Park which lies to the south west of Iqaluit (Appendix 5, Figure 1). Photo 1 City of Iqaluit, Nunavut Iqaluit, being the capital of the Territory of Nunavut, is the economic and population hub of this region. As of the Canada 2006 Census, the population of Iqaluit is 6,184 residents. Population has grown by 46.7% over the 10 year period from 1996 to These figures account for all permanent residents who do not own a home outside of Nunavut. Therefore, this figure does not include the substantial temporary population that varies seasonally and due to employment. It is estimated that the city of Iqaluit has current energy demands for both electricity and heating of 199 GWh with an average 23 MW and 41 MW peak. The Government of Nunavut projects that energy demands of Iqaluit are expected to increase over the next thirty years by over 165%. Diesel and oil are the primary fuels imported to the region for generation of electricity and heating, respectively, to meet this demand (Phase II Pre- Feasibility Report (Ref. No. VA /01-2, Knight Piésold Consulting, page I and II). According to policy City of Iqaluit General Plan By-Law 571 (June 2003) Section 4.2 Watershed Protection Area, the land around Lake Geraldine will be excluded from development, including roads and trails, to protect the present and future water supplies. The watershed boundary will change as the demand for more water to service the community increases. This will result in a search for alternative lakes and rivers adjacent to the existing Watershed Protection Area. It is anticipated that the watershed boundary will increase in the future. 10

11 Similarly, under Section 4.3 Sylvia Grinnell Park Reserve, including the proposed boundary expansion, Only development consistent with the policies of the Sylvia Grinnell Master Plan will be permitted in the Park Reserve and in accord with the Parks Act (City of Iqaluit General Plan By-Law 571, June 2003; page 32) The boundaries for Sylvia Grinnell Park are well defined and just require legislation to become officially designated. The City of Iqaluit General Plan By-Law 571 does leave provisions for development of power generation facilities. According to the City of Iqaluit s land use policy, certain uses concerning utilities, communications and power are permitted subject to zoning by-law amendments. Section 4.1 Nuna, Policy 3 (c) states Facilities for power generation including conventional combustion and renewable energy sources such as solar and wind power..are permitted on Nuna subject to zoning by-law amendments. Nuna is an Inuktitut word refering to land and specifically to the undeveloped hinterland where a variety of traditional and recreational activities occur (City of Iqaluit General Plan By-Law 571, page 29)(See Appendix 5 for full large City of Iqaluit Boundary map) (ii) Description of Community Boundaries Based on the outcomes of the Phase II Pre-Feasibility Report Ref. No. VA /01-2, Knight Piésold Consulting, October 2006 the communities of Iqaluit, Kimmirut, and Pangnirtung were identified for further study (Appendix 5, Figure 2). As recommended, further study of the socio-economic characteristics of these communities was carried out and reported here to determine the criteria most important to citizens of Iqaluit in regards to possible hydro-electric development and existing land use throughout the identified regions. The three identified sites lie south of Iqaluit, bordering Frobisher Bay. Armshow River and Jayne s Inlet lie on the west shore of Frobisher Bay while Cantley Bay is further to the south, on the east shore of the bay (Phase II Pre-Feasibility Report Ref. No. VA /01-2, Knight Piésold Consulting, Section 3.1). Armshow River (Akulikutaq or Tungatalik)- This region borders the Katannilik Territorial Park and is heavily used for year round recreation, camping, fishing and hunting by residents of Iqaluit and citizens throughout the region. Of the three proposed sites, Armshow River is the nearest to the city of Iqaluit in terms of transportation. While this presents some benefits for a hydro electricity transmission corridor, it also presents much concern for users of the land given the proximity to both the park and the city of Iqaluit. Land holding in this region is governed by INAC for Crown Photo 2 Armshow River, QEC Camp 2 11

12 Land, Commissioner s Land throughout the park and some Inuit Owned Land (Phase II Pre- Feasibility Report Ref. No. VA /01-2, Knight Piésold Consulting,Table 4.2 and 4.3). Project development at the proposed Armshow River site would need to take into account each of these stakeholders and the potential impacts on the land, land use and residents. There are cabin owners in this region as well. The pre-feasibility study mapping of this proposed site can be found in Appendix 5, Figure 3. 12

13 Jayne s Inlet (Qikiqgijaarvik) - South of the Armshow River site, the coastal areas of Jayne s Inlet are well used while the regions upstream experience more limited use. The land is governed by INAC for Crown Land and some Inuit Owned Land. Development at the Jayne s Inlet site would have an impact on the Armshow River region as well. While this site itself lies beyond the borders of Katinnilik Territorial Park, the transmission corridor would pass through this Commissioner s owned land (Phase II Pre- Feasibility Report Ref. No. VA /01-2, Photo 3 Jayne s Inlet Knight Piésold Consulting,Table 4.4). Mapping of the proposed Jayne s Inlet project site is referenced in Appendix 5, Figure 4 from the prefeasibility study. As well Jayne s Inlet area is a site used for fishing, whaling and hunting by some. Further communication with land users will be needed providing them with additional information from environmental assessments to determine proper impact assessments. Cantley Bay (Kangalait) - This proposed site is the most distant location for transportation from the city of Iqaluit, on the east side of Frobisher Bay. Cantley Bay is a historic area of Inuit settlement but now experiences limited land use and is apart from any protect areas such as territorial parks. Photo 4 Cantley Bay, upper reaches This region is predominantly Crown Land governed by INAC with some Inuit Owned Land in the region as well (Phase II Pre-Feasibility Report Ref. No. VA /01-2, Knight Piésold Consulting,Table 4.5). It s remote location presents some benefits for limiting impacts on local land use however this factor about Cantley Bay also leads to a necessarily long transmission corridor reaching back to Iqaluit. Site location maps as determined during the pre-feasibility study are referenced in Appendix 5, Figure 5. Survey results in Appendix 3 reflect further details on land use and community feedback and concerns on development in each of these regions. 13

14 (iii) Description of Project Facilities (of Interest) A hydro-electric development project at any of the proposed sites surrounding Iqaluit will require diligent planning and implementation throughout all three suggested time periods for the period of construction, the years immediately following and the future. Development at the selected site will impact, to varying degrees, the project site specifically, the upstream region and along the transmission corridor. The reliability to predict the impacts will require further discussions with land users and the community. As previously mentioned, given the extreme connection Inuit have to the land and environment, gauging social effects without more information on the effects to the environment is not a true estimation. Refer to Appendix 6 for Section 2: Overview of Hydro Electric Facility Operation and Maintenance from the Canadian Electricity Association study of fish habitats in existing facilities. Each of these regions will incorporate land holdings of Inuit Owned Land, Crown Land, Commissioner s Land throughout territorial parks and protected areas to different degrees. Consultation and involvement of each of these land holders and regional cultural organizations is essential for mutual benefits to be realized from the hydro development project during all three project development periods. Facilities required during construction housing for workers, transportation routes for workers, materials and equipment, support services (financial, cultural, social, health and recreation) will have significant impact for this proposed 5 year period. These facilities should be planned and lead into the recovery period following construction during the early years of operation. This recovery period would involve all land, environment and social impacts of the hydro electric development project. 14

15 b. Background Assumptions to Report i. Project background to date The Socio Economic Impact Assessment presented here was commissioned by Qulliq Energy Corporation (QEC) as a further step towards a transition from fossil fuel electricity generation to hydro electric development for Iqaluit. Prior to submission of this report, Phase I and Phase II pre-feasibility studies were commissioned by QEC to identify leading sites for hydroelectric generation and development. The Phase I pre-feasibility report Iqaluit Hydro-electric Generation Sites: Identification and Ranking (VA /01-1) was commissioned by QEC to determine regions surrounding Iqaluit generally suitable for hydroelectric development. Further to this report, the Phase II Pre-Feasibility Report (VA /01-2) was completed in October The Phase II report answered the question of proceeding (or not) with an investment in feasibility level studies for any of the sites identified and ranked in the Phase I report. Furthermore, it recommended two of the three sites that are now proposed for development and analyzed here in regards to socio-economic impacts. Based on the recommendations of these prior reports, further evaluation was carried out here in regards to the socio-economic impacts of potential development at the Armshow River, Jayne s Inlet and Cantley Bay sites. Survey participants were questioned regarding these three specific locations for the 5 year construction period, the 5 years post construction and a 50 year operational period in the future. The following is a list of relevant assumptions made for the consultation, research and report development phase of this project. 15

16 Project background to date (cont d) ii. Consultations Conducting a series of consultation meetings and inviting special interest groups will access a variety of organizations and people in Iqaluit. Conducting public meetings in one language (either English or Inuktitut) will allow for a freer and easier flow and understanding of information, (note: All consultation meetings were open to the general public as well as invited organization.) Meeting for special interest should be separate to allow everyone an opportunity to speak and offer an opinion. Key interest or stakeholder groups include businesses/property owners, Federal and Territorial Governments, Inuit Organizations (NTI, QIA) and the City of Iqaluit, Elders, Hunters and Trappers Organization. People in Iqaluit are aware of the research and planning underway in Iqaluit. People in Iqaluit understand that continued use of fossil fuels for generation of electricity will be a process that is costly, hazardous to the environment and not sustainable. The hydro project is important for the future growth and development of the community in both a personal and business sense. People in Iqaluit do not respond strongly or in large numbers to consultations, however this does not mean there is a lack of interest, opinion or concern about the hydro project development. On a certain level people in Iqaluit understand the need for changes in energy production. There is a core group of residents that have a vested interest in the community, this may include both long term and short term residents, however the long term residence will experience/enjoy the consequences/benefits of planning and development decisions made today. 16

17 iii. Questionnaires The survey concept was developed based on the premise that those attending the community meetings would complete and return the surveys on-site. That there was already a moderate level of understanding amoung participants of the potential for hydro-development at these sites given the pre-feasibility studies are already completed. iv. Level of research That the hydro study is in the early stages of development and detailed engineering, environmental and socio-economic research will be conducted as the project continues over the next few years. That detailed research of socio-economic theory and background data will be based on previously conducted research for Nunavut and Iqaluit. v. Cultural understanding There is a significant importance in obtaining information from an Inuit perspective, whose long term use and cultural connections to the land are important in terms of support and planning of the hydro electric development. 17

18 c. Key Resources i) Public Participation Methods and Process Public participation is a vital part of the socio-economic study process of hydro electric development in Iqaluit. Information and comments collected from the public early in the study process will be of use in planning the hydro facilities and preparing the city of Iqaluit for the opportunities and changes that will result from the hydro development. As part of the hydro electric consultations, efforts were made to consult with the public as well as a number of government organizations, Inuit organizations, and local businesses and the City of Iqaluit to determine their thoughts, opinions and feedback on the impact of hydro generation on the Iqaluit and Kimmirut areas. The SEIA questionnaire developed (Appendix 1) for this project was distributed at each meeting for completion by attendees. The questionnaire was made available in both English and Inuktitut. A PowerPoint presentation was also developed and presented at each public meeting to introduce the scope of the project and the public consultation process (Appendix 2). 1. Summaries from Consultations A total of nine meetings were held with various groups and organizations in Iqaluit and Kimmirut from October to December In addition, specific meetings are pending with the Qikiqtani Inuit Association, Nunavut Tunngavik Incorporated and the Department of Fisheries and Oceans. (Refer to Appendix 7 for pending details, outcomes to be documented in addendum as available). In an effort to reach as many people as possible some meetings were conducted predominantly in English and others were conducted predominantly in Inuktitut. Translation was available at all meetings. Simultaneous translation with the use of a head-set was available at all meetings with the exception of the cabin owners meeting. Three public meetings were organized, two in English and one in Inuktitut, with the objective of providing the public with opportunities to participate in an environment in which they were most comfortable. This is especially important for unilingual speakers. Public meetings were advertised through the media. This included bilingual announcements on CBC radio community calendar, bilingual posters displayed in public places and the community activities section of Nunatsiaq News. A team member was interviewed by CBC radio in English and Inuktitut on the significance and purpose of the socio-economic project. A study team member was also Photo 5 Community Consultation and team member 18

19 interviewed by Nunatsiaq News to provide meeting dates and information on the socio-economic consultations for an article that was published by the paper in early October. In addition to the public meetings, and in order to capture the interest of as many people as possible, focus groups were identified and invitations sent out to these individuals and organizations. Even though invitations were sent out to some organizations, all meetings were open to the public. Focus groups where people were invited to attend were the most successful in terms of numbers of participants and feed back gained. Focus groups included the cabin owners meeting, government agencies/inuit organizations meeting and the business meeting. Public meetings, with the exception of the Kimmirut public meeting, were the least successful with minimal public participation and feed back. A successful meeting was held with the Hunters and Trappers executive members. Over fifty of the SEIA questionnaires were distributed throughout these public consultations. It was anticipated that the questionnaires would be completed during the meetings however many attendees chose to take the survey with them. This lead to a low return rate (See Appendix 3 for response rate figures). 2. Meeting - Public English Two people turned out for the meeting, they were already well informed about the project. No specific issues or impacts were raised. 3. Meeting - Cabin Owners Forty people attended this meeting, the largest turnout of any meeting. Many questions and comments were about technical issues of construction of the hydro facilities (Refer to Appendix 8 for transcripts). Other concerns included: Photo 6 Cabin Owners Meeting Interruptions of ice formation, such as delayed freezing or early melting of ice at mouth of rivers, Travelling on unstable thin ice in areas near hydro facility, Impact of hydro facility on wildlife (ie will it cause wildlife to avoid the area), Photo 7 SEIA Team Leader Natsiq Kango 19

20 Possibility of flooding if the dam overflows, Impact of increased waterflow from dam site on salinity of ocean at mouth of the river, specifically at Jaynes Inlet, Indication that Cantley Bay is a busy fishing area during spring, Concern that a road along the transmission line would permit more people from Iqaluit to travel on the land, concern is for the safety of inexperienced people travelling to these new areas as they may become lost or caught on the land in bad weather conditions. 4. Meeting - Government/Inuit Organizations/City of Iqaluit Approximately 22 people attended this meeting from the Federal and Territorial Government as well as Inuit organizations, and representatives from the City of Iqaluit. Most questions were about the location, cost and extent of construction for the hydro facilities. Some socio-economic questions on education, job training and employment opportunities were asked (Refer to Appendix 8 for transcript). Questions related to job opportunities for local people, providing education and training for work related to construction at the hydro sites, Request for a harvest study to determine current level of wildlife harvesting in the proposed development areas, it was pointed out that if there is a loss of harvesting opportunities there may be an issue of compensation according to article 6 of the Nunavut Land Claims Agreement, Is there going to be an IIBA negotiated? Employment requirements under Article 23/24 of the NNI policy on Inuit employment will apply to the hydro construction projects, What is the residual value of infrastructure development? What are the construction cost estimates? Is it possible to remove Iqaluit 100% from diesel generation? What is the capacity of local businesses to participate in the hydro project How many people will be working on the project? 20

21 Questions on ownership and investment opportunities in the site. Will the plans go to NIRB Training and employment opportunities Will archaeological research be focused on transmission lines as well as hydro sites? Question on costs compared to present day electrical rates and retro fitting of homes Question on the process to explore new sources of energy, were alternatives energy sources such as nuclear What is the cost/km for construction of transmission lines 21

22 5. Meeting - Public Inuktitut Only two people attended this meeting, the potential hydro sites and proposed development was explained to them. 6. Meeting - Business Twelve people attended this meeting representing Industry Canada, Canadian Airlines, Indian and Northern Affairs and a local building contractor (Refer to Appendix 8 for transcript). The following is a summary of questions the group asked: Technical questions on the amount of power to be generated, cost of construction Concern about the high cost of energy is a major strain on the economic viability of businesses in Nunavut 7. Meeting Kimmirut Approximately 21 people from Kimmirut attended this meeting which was held in conjunction with the QEC update by Jamie Flaherty and David Veevee on the proposed Hydro Developments. Interests and concerns were focused on hunting and fishing in the lakes are rivers affected by the hydro development. The following are notes from the meeting in Kimmirut: Kimmirut Meeting These are notes from the Kimmirut meeting and translated and not verified for exact translation Jamie Flaherty spoke first giving a hydro development update there were a number of questions from the audience and his responses are summarized here. Response: Indicates detailed studies on location and pattern of fish cycle are being undertaken at the moment. Citizen1: Not worried too much for the future community is interested in involvement and employment (in hydro project) interested in lowering hydro and fuel costs. Would be interested in bring power to Kimmirut, the best route would need to be determined Citizen2: Three rivers to select hydro site what happens if mineral or archaeological sites are found in the vicinity of the hydro site pick a name for the hydro need a license before starting work (likely reference to NIRB environment impact review). Where are the job opportunities are they available to everyone or just people from Iqaluit will there be shift work two weeks on two weeks off. Will there be hotels for people to stay at? Are there training opportunities? Will people stop using the trail to Kimmirut? 22

23 Response: Employment opportunities will be available for people from Iqaluit/Kimmirut first then other communities. Employees will be provided with housing. The Kimmirut trail will not be affected as the hydro development is not close to it. Licensing requirements (NIRB, IIBA, etc) will be fulfilled) Elder man: Asks something about the time frame for the project is it a long way in the future? Response: Exact date of development is not determined yet This next part is not clear the man asks a question or makes a statement if development is close to Kimmirut both communities (Iqaluit and Kimmirut) can start using hydro- comparison of cost of fuel compared to hydro power must be calculated to determine savings (if there are any benefits). Citizen3: Talks about determining the rivers to be used by determining the power generation potential of various rivers wants to find out more information on the fishing lakes that may be impacted by development - People in Kimmirut want to be consulted on the future development. Response: Indicates there were be ongoing meetings to inform people in Kimmirut on the hydro development. 8. Meeting English One person attended this meeting; the hydro sites and proposed development were explained to them. 9. Meeting - Hunters and Trappers Organization A meeting was held with the executive of the HTO. In general the HTO supports the idea of hydro development; however they did not recommend one site over another. 10. Meeting Elders A presentation was made to the Elders at the Elder s Facility, 18 elders participated. 23

24 In general they thought the Armshow would be a good location for the hydro facility because the dam, reservoir and power plant were located well in land away from the most important fishing areas along the coast. The tidal flats and coast line are areas of major use by people from Iqaluit; this has been a traditional fishing location, especially in spring, late summer and fall. 11. NTI Meeting (Refer to Appendix 6) 12. QiA Meeting (Refer to Appendix 6) 13. Department of Oceans and Fisheries Meeting (Refer to Appendix 6) 14. Summary of Public Consultation and Feedback In general, people of the region understand and accept the need to pursue research and development of alternatives to diesel electrical energy generation for Iqaluit. A few questions were directed at exploring alternative energy sources, such as wind energy. However, people were interested in learning more about the possibilities of hydro electric energy generation. Most comments and concerns focused on technical issues on the engineering, planning and construction of the hydro sites such as location of reservoirs/power plant, power-line corridors, possibilities related to road development, flooding of land, length of construction period, cost of construction and cost benefits to the community resulting from hydro electric generation. It was explained that many of these questions required detailed information and they can be better answered when a hydro site has been selected and more detailed information on the engineering design and costing for a specific hydro site is completed. There were no dominant specific major impacts raised by the public about any specific site that would lead to concerns about the overall impact of hydro development. People did their preferences for developing specific sites, however there was not a strong voice from a significant number of people that would give a solid indication or consensus on a preferred site overall or a site to be avoided for development for that matter. Most comments focused on issues related to land use such as preservation of wildlife habitat and concerns about the possible disruption of traditional hunting and fishing activities. People with cabins near the proposed sites were also concerned about the impact of hydro development on the land around their cabins. These concerns are important issues that must be taken into consideration as they have a direct impact on the people who use these sites most frequently. As with the technical questions, it was explained that detailed research on wildlife and fish biology, hydrology, climatology, and archaeology was being conducted at the moment and this information would be available later in the year. Refer to Appendix 3 for full survey results. 24

25 Highlights from public consultations will referred to throughout the remainder of this report and labeled Public participation results. 25

26 ii) Project Development Impact Scenarios Development of a hydro-electric generation facility for the City of Iqaluit has three key impact timeframes. 1. Lead Up and 5 Year Construction Period 2. The 5 Year Period Immediately Following Construction 3. A 50 Year Period After Construction The 5 year proposed lead up and construction period presents a unique situation of temporary needs for workers, infrastructure (such as roads and other transport routes), housing and initial excavation of the land and sea. Each of these requirements for development pose significant impacts to the society, the land, and the economy of the region. Once this period of construction and development has been completed, the project shifts to an initial operational phase. Within the first 5 years of project completion, the temporary needs of the construction project will diminish and new operational needs will set in. This period will be essential to adjusting and/or sustaining the potential benefits of added employment, business opportunity and income generation that was available during the period of construction. Future prosperity as a result of the proposed hydro-electric development will be determined over the 50 year period after construction. During this time, the real benefits and potentially permanent changes for the region will be established. The environment and the economy both changed over time due to the impacts of the project will be realized during this future period. Figure 1: Rate of Response for Project Impact Timeframes 18% 29% 53% Lead Up and 5 Year Construction Period 5 Year Period Immediately Following Construction 50 Year Period After Construction Overall, the greatest numbers of concerns were expressed for the Lead Up and 5 Year Construction Period, as seen in Figure 1. The least number of concerns were expressed for the 50 Year Period After Construction. Based on the request for more detailed information on impacts to the environment, this figure could change throughout further studies. These concerns took into account broad socio-economic 26

27 issues for the region, not specific to one proposed site option. Figure 2 defines in greater detail the specific concerns related to hydro-electric development over the Lead Up and 5 Year Construction, 5 Year Period Immediately Following and the 50 Year Period After Construction. Figure 2: Socio-Economic Concerns Over Project Impact Timeframes Use of Drugs or Alcohol Crime Health Care Response Times Loss of Inuit culture Unforeseen Health Risks Socio-Economic Concerns General Cost of Living Local Poverty Available Affordable Housing Availability of Job Training Affordable Education Personal Finance Difficulties Job Security Water Pollution Air Pollution Local Noise Levels Increased Air Traffic Vehicle Traffic Near Homes 50 Year Period After Construction 5 Year Period After Construction 5 Year Period During Construction Number of Survey Respondants (Out of 13) In order to properly assess the socio-economic factors as they relate to development of a hydro-electric facility for Iqaluit, these three impact timeframes are measured against four project development scenario options: 1. Option 1: A decision to NOT proceed with hydro-electric development for Iqaluit. 2. Option 2: A decision to proceed with hydro-electric development at the Jayne s Inlet (Qikiqgijaarvik) Site. 3. Option 3: A decision to proceed with hydro-electric development at the Armshow River (Akulikutaq or Tungatalik) Site. 4. Option 4: A decision to proceed with hydro-electric development at the Cantley Bay (Kangalait) Site. The scope of Option 1 presents some unique socio-economic issues related to Iqaluit and the region as a whole. Proceeding, or not, with a hydro-electric development is one of the most significant decisions for the region s future regarding environment, economics and overall prosperity. Options 2, 3 and 4, proceeding with development at a selected site, will have considerable socio-economic impacts common to all sites, 27

28 regardless of the actual site chosen. Further, more socio-economic and environment related impacts will be realized that are specific to only the chosen site, if a decision is made to proceed. It is evident that the focuses of these concerns shift over the three project impact timeframes (See Figure 3). 1. Lead up and 5 Year Construction Period Option 1 A Decision to NOT proceed with hydro-electric development for Iqaluit If the decision is not to proceed with hydro-electric development for Iqaluit: Then opportunities and loss of funding for education, training and employment related to construction of the hydro facility would occur. Pollution resulting from burning of fossil fuels at the power would increase. A large amount of the Nunavut budget would continue to be spent on purchasing fossil fuels from southern Canada rather than being spent on building and maintaining infrastructure and services cost savings for energy consumption resulting from the hydro development would not materialize. Options 2, 3, 4 Decision to proceed with hydro-electric development at Jayne s Inlet, Armshow River or Cantley Bay sites Construction Camps sufficiency A self-contained, self sufficient camp will provide all services (sewer, water, waste, recycling, and energy), food and accommodation, material, labour and equipment. This type of camp would operate separately and would have minimal impact on the community with minimal drug, alcohol and crime related problems. There would also be minimal purchasing of goods and services from the community with consequently, minimal financial benefit to the community. Alternatively a totally dependent construction camp requires a great deal of resources from the community. Where there are shift rotations and crews living in the community, there is a greater impact, especially if a large number of people are hired from the community. This would result in more money flowing into the community and would provide increased opportunity for people to buy goods, services and housing. Unfortunately there are always negative impacts of spending increases. One risk would be basic economics, with more money available in the community, the cost of goods and services could increase as demand increases. Under these circumstances, people on fixed incomes (elders and recipients of social assistance) could find it more difficult to purchase basic needs making life more difficult for them. As well, consideration would have to be given as to what would happen to the community at the end of this construction period, and the affect that a subsequent reduction in spending would have. More research would be needed to determine values for the anticipated increase in spending and the extent to which that would bring about any negative effects. 28

29 Most likely the type of camp that would be developed would be a combination of the two examples described above. On some level there would be negative impacts on the community. Drugs, alcohol, crimes, and increased demand on health services may be some of the negative impacts. Social interaction between transient workers and the community may result in a certain amount of conflict between local families and outside workers who do not have anything invested in the community. The greatest impact would be amongst the youth of the community as they are the most vulnerable to the adverse impact of the interference from drugs, alcohol, and sexual activity that the transient community brings to the city. Members of the community would have relativity easy water or snow machine access to the construction site, unlike mine sites which are long distances from communities. This may have a negative impact, as described in the previous paragraph, with that added problem for the contractor of maintaining a secure camp If local workers are living at the camp for long periods their families may want to join them at the camp. Special provisions for accommodation, food, and in some case education, would be needed. 2. The 5 Year Period Immediately Following Construction Option 1 A Decision to NOT proceed with hydro-electric development for Iqaluit Fuel Costs As fuel costs increase they result in: More small businesses that wouldl not be able to afford to pay operating costs resulting in business closures. Increase in subsidies to home-owners and businesses to make heating fuel affordable, results in less funding for capital and operating expenditures to expand and maintain facilities and services in Nunavut. Reducing or maintaining existing energy costs would reverse the effect of the above scenarios making it possible for northern businesses to continue to work and grow. Cost of Living and Economy With the current use of fossil fuels which are shipped to the region of Iqaluit for hydro-electric generation, the cost of electricity is very high and can fluctuate based on global prices and conditions in the north. This puts a significant burden on the residents of Iqaluit which would continue for the future should development not 29

30 proceed. region. These costs could impact the overall future economic prosperity of the Environment Much concern for the environment was expressed in the survey responses and is a fundamental part of IQ (traditional knowledge). Continued use of fossil fuels will have an impact on the conditions of the environment: air, sea and land. Studies indicated that burning of fossil fuels is a key contributor to issues surrounding a changing climate. People of the north are already well aware of the impacts that changes to their arctic climate can bring. A decision to not proceed with hydroelectric development will result in the continued use of fossil fuels and pose an environmental threat to climate. A decision to proceed with development, while posing some other risks around water sources and land use, will fundamentally change the way that electricity is provided for the City of Iqaluit. Options 2, 3, 4 Common issues associated with a decision to proceed with hydro-electric development at Jayne s Inlet, Armshow River or Cantley Bay Increased Activity/Pollution The increase air and ship traffic concentrated around the hydro site during the construction period would result in increased fossil fuel and noise pollution. This can have a negative impact on wildlife cycles and wildlife habitat in Frobisher Bay and around the site. Road Development Road development along transmission lines could result in: Benefits of easier access to the land by vehicles (trucks and cars) and could also lessen travel time, offering less time away from home. Benefits of travel by vehicle would enable more people to travel further from Iqaluit on day and overnight trips. Benefits to families from increased opportunities for hunting/fishing, camping could improve the fish and animals that can be harvested. Increase the ability to transport materials further from Iqaluit resulting in more camps and more housing on the land, could improve housing by easing pressure on Iqaluit Possible adverse impacts if more people with fewer land skills could travel easily from Iqaluit - may result in people becoming lost on hunting/recreation trips or when not carrying adequate food and clothing, they may suffer from 30

31 exposure due to sudden changes in the weather. Dangers of highway accidents with anything from both typical vehicle accidents to collisions with animals or even collisions with snowmobilers. The high cost of building and maintaining roads in northern climate over particularly rough terrain accompanied by spring runoff and flooding makes a standard road a very expensive proposition Port Facility Construction of a barge landing site may lead to the possibility of developing a port facility for Iqaluit. This will depend on a number of factors such as the suitability for expansion of the barge site to a port facility (water depths, tide, current), available land for terminal storage facilities, construction costs of port/terminal/road access to Iqaluit. Construction of a port may result in transportation cost savings, reducing the cost of goods and services delivered to Iqaluit. People access Ward Inlet, a favorite hunting area, through Cantley Bay. Here, the benefit is easy access to hunting locations via the transmission line road. The negative impact may be increased traffic from construction and maintenance and this increased access may reduce wildlife activity. This possible effect would be of greater concern if the cumulative effects on wildlife over time were factored in. A port development at the Armshow site may impact the access route to the Kimmirut Trail and the fish habitat and fishing activities at the mouth of the River. This would interrupt traditional hunting and fishing activities. A port at Jaynes Inlet would require maintaining a long road to Iqaluit, which may reduce the transportation cost savings. People hunt whales and waterfowl in the coastal area opposite Jaynes Inlet. This must be taken into consideration during the construction and maintenance of hydro and port facilities otherwise traditional hunting and fishing could be negatively impacted. Similar scenarios may also occur at the other sites. If shipping activity needs to be scaled back during the hunting period this may conflict with the peak shipping season, which would reduce the effectiveness of a port facility. Options 2, 3 Common Issues should the hydro-electric development at Jayne s Inlet or Armshow River proceed Development of hydro facilities, transmission corridor and road to Jaynes Inlet or Armshow River sites will require bridges at a number of locations along the road. A bridge across the Sylvia Grinnell will permit access to the west side of the river which would result in: 31

32 Increased vehicle traffic and hunting in the area, Increased access to Sylvia Grinnel Park Expansion of the City of Iqaluit to the west side of the river; this provides more land for development, however, it also results in a larger built-up area that requires more services that are at a greater distance from the community, increasing the cost of operating the community. Figure 3 - Shift in Socio-Economic Concerns Over Project Impact Timeframes Number of Total Related Responses Lead Up and 5 Year Construction Period 5 Year Period Immediately Following Construction 50 Year Period After Construction 5 0 Environment Economy Health & Well-Being Focus of Concerns Option 3 - Issues relating to decision to proceed with hydro-electric development at the Armshow River sites Construction of a barge landing and road to the power plant would happen along the existing Kimmirut Trail. This may result in easier access by snow machine along the road way to the Kimmirut Trail. During periods of construction in winter, if a lot of heavy equipment uses the road, then precautions would be required to avoid encounters with snow mobile traffic (providing the public is allowed to access to the site). If the public is not allowed access to the construction site and the usual snowmobile road route is used, then it may be difficult for people to find a new way to the Kimmirut Trail. This would make access to recreational and hunting and traditional use of the area more difficult, resulting in a direct conflict with the people of Kimmirut/Iqaluit and the developer. 32

33 3. The 50 Year Period After Construction Habitat degradation Increasing access to the land, along hydro transmission line, for hunting and fishing activity is a benefit to traditional hunters who would ensure country foods are available for the people in Iqaluit and this cost of living would be reduced. On the other hand, the problem with more people having access to and intensively using a defined area is the potential degradation of wildlife habitat and the land in general. This in turn could reduce the availability of country food, forcing people to purchase food at store prices in Iqaluit, which may not be affordable. Mineral Development Mineral development in the Iqaluit area will continue over the next 5 to 50 years. A find and subsequent developing of a mining facility near the community will result in an increase in demand for hydro services to assist in mine operations. Additional hydro facilities may need to be developed near Iqaluit. Alternative Energy Alternatives to hydro energy, such as wind/solar/nuclear become more efficient and less costly. As the demand for energy increases, alternative energies sources are developed. Over the years, this could make the hydro generating facilities obsolete. 33

34 iii) General impact of construction of hydro-generation facilities There are many potential positive or adverse impacts that construction of any hydro generating facility can bring. A brief overview of the most significant positive and negative impacts associated with infrastructure, employment, training & education, business opportunities as well as cultural supports and others are described below. 1. Physical and Social Infrastructure Development Anytime a large construction project comes to any area, the possibility always exists that there will be an influx of workers from areas outside the construction region. This would also be coupled with significant traffic related to the hauling and shipping of construction equipment and the removal of materials from the ground. This kind of increase in vehicle traffic and population can put a strain on a wide range of local infrastructure components such as roads, transportation systems, water and waste treatment, telecom & utilities, medical services, housing, community and recreational facilities. This calls for early identification of possible impacts to various elements of local infrastructure and identification of the current infrastructure stresses or weak point. Early identification means steps can be taken to make improvements to strengthen or supplement current components of existing infrastructure. It is also important to note that not all identified impacts are for the long term. Many may be temporary or relatively short term for either part or for the full duration of the construction period. Funding for these upgrades would come from various levels of government. Usually the long term benefits to improvements on the various elements that make up the local infrastructure outweigh short term inconveniences. In most cases a current roadmap or plan has already identified weaknesses, and plans for improvements. This is always a good starting point for developers to work with local officials to contribute resources to aid or speed up the current action plan. When developers work together with the local community and focus on public participation then the community in general can become a much bigger stakeholder in the overall project. This can also foster a source of local pride and ambition. 2. Employment One the greatest positive impacts that a hydro electric development project can bring to a small community is the boost to local employment. The boost in employment can create a ripple effect in everything from improving the local economy to various effects on social well-being (both positive and negative). The effectiveness of the improvement to local employment depends on the current local skill set and capacity of the local population. Depending on the time remaining until construction as well commitments to funding, citizens within the local community could be trained in the various positions required to work on various aspects of construction and operation of the facility. There are always some with very specialized training that may not exist within the local population that are required for construction and would 34

35 be hired from outside the area. Efforts should always be made to hire from within the local or surrounding communities and provide training as required. Hiring from within the area serves to keep the local population personally invested and the subsequent financial benefits can be kept within the community, region, and territory. It also serves to strengthen the overall capacity of a community and can have the added effect of improving social well-being. 3. Training & Education Training and education are another great positive impact from a hydrogeneration facility. The deeper and broader the training and education within a given community the greater the capacity a community has for a self sustaining future. The benefit of a hydro electric generation project is it takes many years to build and then remains in operation for many years to come. This situation offers many opportunities to improve local training and education for years to come. Initially people from within the community with technical and trades skills can upgrade their skill set to work on the construction and planning portions. Current employees of local business that may serve the construction project could also receive upgrading skills to reflect the specific tasks relating to with a hydro generation construction project. The long term nature of this type of project allows new or improved programs in many areas most notably electrical engineering. There are a number of incentive programs that could be put into place to encourage youth to plan for a career in engineering or skilled trades such as Hydro One s Trade Up For Success program ( and a Construction and Maintenance Electrician brochure for download for example. 4. Business Opportunities Although each hydro electric generation construction project varies in size and scope, there are always opportunities for business whether they are directly or indirectly related to the project. Special procurement and bidding preferences should be given to local companies whose workers include some of the skills directly attributable to construction such as general laborers, engineers, demolitions personnel, heavy equipment operators and barge operations etc. There are also other business opportunities for businesses who would be working on the elements that support the logistical and lead up to construction phases. These businesses would include those providing impact assessments, and other consulting services, transportation to possible sites, translation services etc. Then there are a number of spin-off opportunities that may form as an indirect result. This would include positive economic impacts on the local economy like improving, tourism, hotel and service industries, and air/ water charter services among others. Most hydro generation projects tend to create additional unforeseen post construction spin-off businesses. These opportunities would be created over 35

36 the long term due to the possible creation of new settlements and/or communities in and around the site. Hydro electric sites can offer multiuse aspects of the area including tourist activities and recreational uses. This can improve appeal and attract investors to these areas. In a nutshell the benefits to local business generally outweigh any negatives or short term losses. The overall desire is to create a win, win situation for both the developer and local business. 5. Cultural Supports Respect of local culture must be of supreme importance when considering development of any large project in or around a community. With the participation of local residents and those aware of all cultural significance to the area, guidelines can be put in place to maintain and support all local culture. From observing and respecting the ideals of local culture, specific efforts can be made to make those involved in the project not only aware of local culture, but a party to preserving it. Cultural awareness programs are useful not only to those new to a specific culture but even those within a given community who wish to learn more about their own culture. Incorporating aspects of local culture into all aspects of the hydro generation project can place a unique fingerprint of Inuit culture on the project. For example including visually significant elements or representations of the culture in everything from the printing of project status reports to physical design of the site architecture can provide a beautiful showcase. Focusing on these ideals can serve to make the project a visual symbol of local culture, pride, and distinctiveness. 36

37 iv) Potential Impacts: Iqaluit, Local, Regional 1. Health and Well-Being Iqaluit s population is a diverse cross-section of peoples not typically found in other northern communities. Iqaluit has attracted many people from not only across the country but around the globe. The injection of other values and cultures has had a profound impact on Iqaluit and the territory overall; most noticeably over the last 30 years. Iqaluit being the largest urban area has become the hub of government, commerce and new technologies. Playing the role of the largest urban area and the conduit to the south and the rest of the world can come at a steep price. No growing modern city can escape the outside influences that come to any urban area and these include a faster way of life, a dilution of traditional values, incidence of crime, drug and alcohol abuse, and other social issues like homelessness. All of these factors can affect the health and well-being of the local and regional population. There are many stresses brought forward through interactions of cultures and ways of life. Most notably would be a general state of anxiety over the loss of traditional culture and values. That being said, it is the very nature of the Inuit people to be survivalists and experts at adaptation to various climates around them for thousands of years. It is this same basic set of skills that helped them establish a new territory and framework for self determination, self reliance and the ability to teach youth new ways of adapting to their surroundings. The improvement to the local health system in a few short years proves that. Iqaluit and other populated centers of the north had to rely on the southern health care system. But now having local medical facilities reduces the need for traveling south for care. As detailed below, there are a number of existing issues but the track record should predict an improvement in the overall health and well being of the people of Iqaluit and its neighbors. Proper care and early planning should lead to additional improvements in the health care system that may come as a result of the hydro electric project and serve to reinforce the well being of Iqalummiut. Public participation results - Health and Well-Being Although the turnout and degree of public participation was not as high as anticipated there are sufficient responses to see commonalities in the responses given. Individual questions have been totaled to illustrate impressions and are available in Appendix 3. Below is a summary of the feedback relative to health and wellness. Less pollution will make us all healthier I have concerns of how the project will affect my family I am happy future generations will have cleaner air I feel drugs & alcohol are a problem among adults and youth in Iqaluit I have seen co-workers have trouble with alcohol or drugs I wish I had more education 37

38 Survey respondents were asked to identify which items they valued most out of the following list. The questionnaires filled out and returned show that the most important values remain those traditionally held in regard by Inuit, as well as values of safety and security valued by most Canadians. Table 1: Most Important for Health, Home and Local Community (Survey Question 7) Keeping traditional ways 9 Respect of elders 11 Impact on the environment 8 Preserving wildlife habitats 10 Religion 2 Family 9 Money 5 Good health 11 Traditional Inuit games 4 Sports 7 Preserving language 11 Preserving history 10 Fishing 10 Hunting 10 Eliminating local poverty 8 The future of Iqaluit 7 Eliminating crime 8 Good nutrition 9 Saftey and security 10 EDUCATION (added) 1 a. Individual and Population There are a number of factors that can affect the individual and a population s state of wellness. The most likely and immediate factor would relate to a sudden increase in income. People may handle new increases in available income in a variety of ways that can have both positive and negative impacts. For instance, a better overall quality of life is possible if the individual or family chooses to purchase a new vehicle, better living accommodations, better nutrition or sports and recreation equipment. In fact the ability to purchase new snowmobiles or marine vehicles for instance could serve families in the community for use as recreational or hunting tools. Either way, purchases of this nature could provide a number of benefits. Alternatively, some individuals may choose to spend their additional available income on drugs or alcohol. This decision can lead to physical, emotional and mental health issues for the individual thereby impacting their own well being and that of their family members in many negative ways. Additionally, an individual s wellness may be affected in other areas such as work related injuries do to a small or large scale industrial accident. These types of incidents effect individuals, their families and can have destabilization effect on the rest of the community. 38

39 b. Community/Cultural Group Cohesion/Family Cohesion Wellness of the individual is only part of the equation when measuring impacts. The wellness of the community in general has many facets to it. The cohesion of families and the community together all have bearing on the overall wellness of a community. Positive and negative impacts on traditional culture can also have consequences in terms of a community s state of wellness. Nunavut s overall health indicators could serve as reference points to help understand the key factors that are currently affecting the overall territory and what items to address on the local level (Refer to Table, page). As mentioned previously, Iqaluit has all the pressures of an urban centre as well as the pressures of a rapidly evolving culture due to the exposure of new values, technologies, cultures and development. Everything from increases in family violence, to stress and mental health issues, new infectious material from outside sources, strains on inpatient and ambulatory services and increased pharmaceutical needs is impacting the city of Iqaluit. Because the rate of change in Iqaluit is happening so quickly, it is very difficult to predict which areas of community and family wellness would be impacted specifically as a result of a new hydro electric development and which are the result of rapid overall changes and outside influence. The possible increase in workers from out of the area could lead to cultural misunderstanding or oversight. This influx of temporary workers may bring prejudices or preconceptions with them that can destabilize local cultural harmony and well being. c. Traditional Culture There is a regular need and a right for local Inuit to maintain their culture in various ways. Fundamental to this are activities such as the right to hunt and fish for their family and community, to attend events of cultural significance and the need to be out on the land. Aside from the issues of land use and traditional hunting rights and methods, traditional culture also has another vital component and that is, language. The Department of Culture, Language and Elders and Youth have a mandate to preserve the enduring yet threatened Inuit culture. Below are a list of critical issues which could serve as a guideline to ensure that efforts be established to maintain these items of great importance. Establishing the ongoing participation and support of the Department of Culture, Language, Elders and Youths key issues support the efforts of a stronger state of well being for all Nunavummiut not just those in the immediate area of Iqaluit and result in a stronger overall community project, not just a QEC project. 39

40 d. Possible Impacts There are some impacts which would be directly attributable to the hydro electric project as follows Construction related injuries, onsite workers, or possible industrial accident Extended work hours during and post construction leading to stress on employees and their families Possible dangers to environment from industrial accident (spills, fire, toxins) resulting in ecological damages could cause physical and mental health problems. Population dangers from industrial accident Residual long term health effects of construction on individuals, blasting (hearing), exposure to chemicals etc. e. Additional possible impacts or concerns Absence from home and community while at the site Less time to spend with family and community could impact traditional values transfer to younger population Less time on the land for hunting and fishing could impact workers, family and community Outside influence in Inuit culture Lack of cross cultural understanding Schedules of work may interfere with Inuit family and cultural values Contrasting work methods and styles between southern workers and traditional elders 40

41 2. Business Opportunities A Hydro Electric Development Program will provide various business opportunities over several years given the differing needs and impacts throughout the following project periods: Pre-construction planning and consultation Physical construction Post construction operational years Post operation decommissioning and restoration a. Inuit and Nunavut Owned Businesses The business opportunities that will be created can serve to improve Nunavut s overall vision of prosperity for the future of all Nunavummiut. Nunavut s vision of a prosperous future 1 is driven by the wishes of the people of Nunavut and provisions to help establish this effort are in everything from the Land Claim agreement to Nunavummi Nangminiqaqtunik Ikajuuti (NNI) policy. Efforts to ensure the benefits and future prosperity of Nunavut s economy are driven by the success of the people and businesses that live in Nunavut. A summary of the key policy objectives created by NNI is described below as shown on the NNI website ( The Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) was developed by the Government of Nunavut (GN) in close consultation with Nunavut Tunngavik Inc. (NTI), and came into effect April 1, The objectives are set out in Section 7: a) Good Value and Fair Competition To secure goods and services for the Government at the best value, recognizing the higher cost of doing business in Nunavut, and using a contracting process that is clear, fair, and equitable. b) Strengthening the Nunavut Economy To build the economy of Nunavut and its communities by strengthening business sector capacity and increasing employment. c) Inuit Participation Subject to ss.16 (2), to bring about a level of Inuit participation in the provision of goods and services to the Government of Nunavut that reflects the Inuit proportion of the Nunavut population. d) Nunavut Education and Training Subject to ss.16 (2), to increase the number of trained and skilled Nunavut residents in all parts of the workplace and business community to levels that reflect the Inuit proportion of the Nunavut population. Familiarizing yourself with the Policy Definitions, as well as Sections 11, 12 and 18 of the Policy, will provide you with the basic information you require. 1 Pinasuaqtavut

42 You can download a copy of the full NNI Policy from the link: NNI Policy April 20, Final - Approved by Cabinet English.pdf Source: NNI Website - There are a large number of resources online and through other mediums to assist and inform Inuit and Nunavut owned businesses of procurement and bidding practices. This information can assist local businesses to improve their processes and help ensure priority is given to Inuit and Nunavut owned businesses over outside bidders for any opportunities resulting from this project. Below is a sample of the kind of material that is provided to educate and assist existing businesses and entrepreneurs: Note for Inuit and Nunavut Businesses If you own or operate an Inuit or Nunavut business, you should be aware of the Government of Nunavut s incentive policy. It could make the difference between winning or losing a government request for proposals or tender. The objective of the policy referred to as Nunavummi Nangminiqaqtunik Ikajuuti or NNI -- is to provide a preference for Inuit and Nunavut businesses when bidding on government requests. It does this by providing a favourable adjustment based on the business ownership, residence and locale. To illustrate, the maximum adjustment would typically be applicable to an Inuit business bidding on a GN request for services in the Nunavut community it currently maintains its operations. An Inuit business under the NNI Policy is a business that legally operates within Nunavut and is either 51% Inuit owned or controlled by Inuit and registered on NTI s Inuit Firm Registry. Similarly, a Nunavut business is subject to Nunavut s law and must be 51% owned or controlled by Nunavut residents so that the majority of benefits go to Nunavummiut. The GN maintains the registry of approved Nunavut businesses. To ensure that your proposal is handled appropriately, it is important to indicate the business status on your proposal and to keep your registration current. Lists of registered businesses with the GN and NTI are maintained on their respective websites and provide all buyers with information on suppliers in Nunavut and the goods and services they offer. Source - Department of Community and Government Services, Government of Nunavut In addition to the Government of Nunavut s commitment to Inuit and northern business development, there are a number of commitments and incentive programs through the federal government. One example is the Innovation and Knowledge 42

43 Fund which is explained further below in an excerpt from the Government of Canada Business service website which can be found in Web Sources reference page. The Innovation and Knowledge Fund investments are made in economic development activities beneficial to each of the territories with a focus on assisting territorial residents to participate in, and benefit from, innovation and the knowledge-based economy. Priorities are to help Northerners seize opportunities in the new economy (those activities new to the North), and to further science, technology and research in the North. Eligibility Criteria: Organizations or associations (including social enterprises), other levels of government, individuals and other non-federal entities, public or private, that are involved in the economic development of the North. Eligible Activities Research and Consultation: research, feasibility studies, planning, consultation dissemination of knowledge. Supporting innovation: research, development of products and markets, pre-feasibility and feasibility studies, business cases, assistance in establishing patents, standards, certification, etc. Building capacity of individuals: research, consultations, and investments complementary to initiatives for skill development of individual Northerners. Building capacity of organizations: research and expert support to build the capacity of organizations to serve the economic interests of Northerners. Source - The Innovation and Knowledge Fund Canada Business Government of Canada 2 Under Article 26 of the Nunavut Land Claims Agreement, an Inuit Impact Benefit Agreement (IIBA) is necessary before any major development project begins in Nunavut. The IIBA is negotiated between the proponent and the Designated Inuit Organization (DIO) of that region. DIO s seek community input for these agreements, therefore staying informed and enabling input in the IIBA process is important for communities. Benefits negotiated are guided by: Inuit cultural goals, Achieving Inuit high standard of living, Nature, scale and cost of project, Project direct and indirect impacts on Inuit, Keeping a realistic view on project s viability, and Ability for non-inuit in Nunavut to benefit. 2 Mechanisms for Aboriginal Community Benefits Thirteenth Annual Report Indian and Northern Affairs Canada 43

44 b. Business Funding Funding to assist new or existing Inuit and Nunavut businesses relating to the hydro electric development project opportunities could be established as a joint effort. This collaboration can be accomplished between QEC, Nunavut Business Credit Corporation (NBCC), NTI, Kakivak Association, The Nunavut Economic Developers Association and others that wish to see local and regional Inuit and Nunavut businesses prosper. Below is a brief glimpse of the types of funding resources that can be accessed to provide Inuit and Nunavut businesses with possible start-up capital, training funds to improve existing employee skill sets or funds to diversify existing business plans. Kakivak Association is a community and economic development organization serving Inuit, by providing business, employment and training services to enhance the strengths of communities in the Baffin region. Source Kakivak Association - Nunavut Business Credit Corporation (NBCC) NBCC is a crown corporation owned by the Government of Nunavut. It aims to helps individuals and businesses in Nunavut take advantage of business opportunities through NBCC s financial services. Their services include long and short-term loans, contract security, equity positions and loan guarantees. NBCC provides these services in the range from $100,000 to $1 million. Source Canada-Nunavut Business Service Centre Atuqtuarvik Corporation - As an Inuit-owned investment company, we understand that economic growth in Nunavut is vital to improving the quality of life for Nunavummiut. This is why Atuqtuarvik Corporation was established - to help develop the economy by providing loans and equity investments to Inuit-owned businesses. Source Atuqtuarvik Corporation c. Local, Regional and Territorial Business Competitiveness Potential positive impacts The mechanisms for supporting Inuit and Nunavut businesses are in place as just previously described and the remaining parts of the equation to the success of these mechanisms are funding and opportunity. There are a number of opportunities which will be divided between business opportunities and employment opportunities through the lifetime of the Iqaluit Hydro Electric Development Project. Some of the business opportunities are directly related to the planning, and actual construction phases while others will relate 44

45 towards the operational and post operational phases. Throughout the lifetime of the hydro electric project there may also be a number of spin-off opportunities that may arise. Project Planning & Consultation Already there are business opportunities for Inuit and Nunavut based businesses in this current planning phase such as this Socio-Economic Impact Assessment, translation, site transportation, facility rentals for meetings, printing of maps as well as ongoing environmental studies. Construction Types of positions that will be created to facilitate and support construction and operations: Civil contractors Painters Rebar workers Concrete and formwork Mechanical and construction engineers Blasting technicians Heavy equipment operators Camp facility setup Water and waste treatment o Accomodations o Catering and food delivery and preparation Transport and shipping jobs and business opportunities (air and sea) o Barge and dock facilities o Roads o Bridges On-going socio economic consultation Ongoing environmental monitoring (both environment and wildlife monitoring) o Monitors o Surveyors o Geologists 45

46 Spin-offs On-Site There are a number of possible spin-off opportunities that could occur over the lifespan of the project. As a seemingly obvious example, Enokseot Holdings held public consultations in Iqaluit and Kimmirut. These consultations require translation services, printing from local printers, equipment rental etc. For all the services that were required an opportunity was created for a local or Inuit business. This is a small short term example but it illustrates the point that not all business opportunities are construction related and yet the gains to the community are there no matter how big or small. As an example of a larger more permanent opportunity, the area near the site of the hydro electric facility could become a site for tourism. At other hydro electric sites, this concept has proven to be not only a source of multiple business opportunities, but an opportunity to display local culture and pride in the accomplishments of the peoples of the region. A successful working example of this is Landsvirkjun which supplies the people of Iceland with hydropower and geothermal energy. They have turned a number of their hydro facilities into tourist locations that display not only information about the facility and hydro power but use it as a site for putting Icelandic culture on display. Establishment as tourism location (See tourism section) could bring a number of opportunities such as: Operational and support positions, gift shop (sell work of local artists) Boat operators Marketing and sales positions Cultural hosts/advisors Food services Other future spinoff businesses (if concept succeeded) Initially construction related positions 46

47 Spin-offs Iqaluit and surrounding areas Due to both the possible improvement in the local economy from expected cost of fuel savings and electrical energy as well as potential construction phase boom, many jobs could be created from virtually all areas of business: Food industry Local retail Construction Manufacturing & engineering Hospitality Local tourism Air charter Fishing and hunting related Local arts Possible adverse impacts There are a number of adverse impacts which would be directly attributable to the hydro electric project as follows A lack of implementation of financing to help Inuit and Nunavut businesses in a timely manner could lead to lost opportunities Language barriers could lead to lost opportunities Local human resource and business capacity may not have enough of the required skill set in time for initial construction, opportunities are lost to non-regional companies Immediate fuel and heating costs remain too high before project construction opportunities begin, local businesses fold Mitigation Improvements and Enhancements To ensure immediate and long term economic growth of existing businesses in and around Iqaluit, local capacity needs to be determined immediately. Then, financial assistance or incentive programs would have to be initiated to give to those local businesses as much opportunity as possible, as soon as possible. In addition, awareness initiatives should be created to inform business development platforms such as Kakivak Association, Nunavut Business Development Corporation as well as Arctic College of the emerging opportunities. QEC should work with these entities to establish early and effective measures to ensure success of these programs. 47

48 d. Avoidance Boom/Bust Cycles There can be positive and negative impacts of periods of short term prosperity in a long term of do scarcity. Through the formation of an Inuit Impact Benefits Agreement (IIBA) and a Socio Economic Monitoring Program a sustained effort could be established to ensure continued and ongoing opportunities. Construction Period There will be abundant employment opportunities during the planning (2-3 yrs) and during the construction period (3-10 yr period? depending on size and location of hydro facilities). But, when construction is over, job opportunities would diminish drastically resulting in a large number of workers that could be unemployed and wouldl need to go elsewhere to find work. Proper monitoring through the entire construction period allows time for review and predictions on the local job markets. With the mission of establishing ongoing opportunities for local business, future construction and other infrastructure initiatives could be invested in to ensure ongoing opportunities. Cost of living This project would cause and increase in the number of good local jobs resulting in an increased income for a large number local people. This increases the abilities of local people to buy more goods and services including housing. However, with increase demand, the cost of living for goods, services and housing may increase. People with stable employment may be better able to afford these prices but for people on fixed or low income such as unemployed, unskilled, traditional hunters and elders, increased costs may be unaffordable. This can result in people needing to reduce their lifestyle which may create hardships for lower income earners. In time the savings in energy costs to the province as well as the local region could help to lower the cost of living. Through the number of self sufficiency efforts being put forward a decrease in the need for imported goods and services may also contribute to a lower cost of living as well as a more stable future. Public participation results - Business Opportunities Although a greater turnout was anticipated, as with other public meetings held to engage various groups in dialog about the proposed hydro electric development project, the turnout was low. Given the number of attendees at the business meeting some valuable statements were gathered that seems to suggest some likely common opinions among Iqaluit business owners. The following statement was captured among those attending, Here we are paying so much of your income to keep your warehouse heated and to pay for heating and things like that. They all indicated that there is a major strain on businesses. 48

49 Once again there was also concern about the overall project costs and the outcome of environmental studies. There were not scores of businesses looking for what opportunities were going to be created for their area of business. It is likely that if real quantitative and qualitative data is sought on the impressions and concerns of local Iqaluit and area businesses, there will need to be further consultations as well as possibly more dialog in a one on one basis. The responses to the questionnaires and the resulting data totals can be obtained in Appendix 3. 49

50 3. Employment Opportunities a. Inuit Employment Opportunities One of the key issues is a common thread among most northern communities is that there is a lack of employment opportunities especially among Inuit. The commitment to improving Inuit employment is a paramount objective of the Government of Nunavut and is described in the Land Claim Agreement. The following text comes from the Government of Nunavut: The many challenges facing Nunavut have not disappeared since the creation of a new territory, but exciting possibilities continue to present themselves. One of the most important opportunities stems from Article 23 of the Nunavut Land claims Agreement (NLCA). This article states that the objective is to increase Inuit participation in government employment in the Nunavut Settlement Area to a representative level. There is a sense in Nunavut that we can do things differently. Through the development and implementation of an Inuit Employment Plan (IEP) which is consistent with Inuit Societal Values or Inuit Qaujimajatuqangit we can continue to move towards a representative level. It is critical that the government s workforce be representative of the population it serves. This is the most effective way to ensure that service to the public is responsive and culturally appropriate. A goal of the Government of Nunavut is to have a workforce that representative of the population by the year The government of Nunavut appears to be making strides in leading efforts as can be seen in yearly published statistics report put out by the Government of Nunavut titled Towards a Representative Public Service Below is a summary from the March 2007 report and it shows a steady increase in Inuit employment within all areas of the GN from 1999 until 2007 as illustrated in the following (Table 2). Table 2: Inuit Employment Sectors (Government of Nunavut) The full report is available in printed from the Government of Nunavut or on their website at which lays out figures for all GN departments, agencies, boards and corporation. 50

51 Appendix 10 includes figures that show not only the full page from the above summary but statistics for Qulliq Energy Corporations commitment to increasing the number of Inuit employment opportunities. So even before initiating plans to improve employment opportunities through the Hydro Electric Project Qulliq Energy Corp has established it s commitment to offering expanding employment opportunities for Inuit. Although it is not decided which positions will be employment directly within Qulliq Energy Corp and which will arise as part of the previously mentioned business opportunities, a number of employment opportunities have been identified during the pre-feasibility study as outlined in Table 4 titled TABLE 2, IQALUIT HYDROELECTRIC PROJECTS IQALUIT BASED EMPLOYMENT OPPORTUNITIES, JAYNES INLET HYDROELECTRIC PROJECT, ESTIMATED IQALUIT BASED EMPLOYMENT OPPORTUNITIES. This is an estimate and will change but it illustrates the number of direct positive impacts that are possible. A key factor in determining the amount of available positions for Inuit and non-inuit will be based on local capacity. If local capacity contains skilled workers then the opportunities will be prioritized toward local Inuit. Otherwise skilled workers will need to be brought in from wherever they can be sourced with priority then falling to local non-inuit, then regional or territorial preferences. The aims being to always offer opportunities to Land Claim Beneficiaries first then spread out from there keeping opportunities as close to home as possible. Additional efforts to further assist in training and hiring of Inuit have been updated in the Inuit Accord, just signed Nov 28, It is included in the Appendix 11 and is broken down from sections 1.2 to 3.0 The Inuit Accord is part of the Aboriginal Human Resources Development Strategy, which is designed to increase access to skills training and jobs for Aboriginal communities. To date, more than 130,000 Aboriginal people have found jobs as a result of the Aboriginal Human Resources Development Strategy. To further reinforce that momentum, the Government of Canada doubled the size of the Aboriginal Skills and Employment Partnership in Budget Source ITK, 2007 Press Archive 51

52 b. Local, Regional and Territorial Residents Even with the preferences to Inuit hiring it is not reasonable to assume all positions for all projects in the north be 100% Inuit especially considering the average age of the Inuit population is only 20. The effort in keeping things close to home offers the local, regional and territorial residents opportunities as well. These efforts must be maintained to keep in/out migration stable so no sudden influxes either way will affect local capacity. Should large numbers of residents start leaving the area over a lack of opportunities then it can cause ripple effects in the entire area and destabilize the economy and effect the overall health and well being of the residents. Funding should be given to programs to continue to build on local capacity and to improve local, regional and territorial skill sets as well to create a stable rate of growth in the region. As discussed in the business section there are many established avenues which are always being improved upon to assist business owners to start up new opportunities and or build up skills and training for their existing employees. 52

53 Table 3: IQALUIT HYDROELECTRIC PROJECTS IQALUIT BASED EMPLOYMENT OPPORTUNITIES, JAYNES INLET HYDROELECTRIC PROJECT, ESTIMATED IQALUIT BASED EMPLOYMENT OPPORTUNITIES (QEC) 53

54 c. Potential positive impacts New employment opportunities will be created to provide both short term immediate and long term opportunities for local and regional Inuit. Over 200 temporary and long term positions have already been identified as described in the pre-feasibility study. Could lead to a local boom and with proper planning and support from Government and other investors it could contribute to long term prosperity Creation of a number of ongoing and spin-off employment situations (See business opportunities section for spin-off opportunities) Efforts to train and build skills of local Intuit could pay off in a stronger more self reliant, self sustaining Nunavut. Increased overall state of well-being if the community becomes more economically strengthened and jobless rate is diminished Serve as a point of inspiration to young people in the area what the people of Iqaluit and Nunavut are capable of. Lead to increased enrollment in Arctic College across the board Funds spent training and hiring stays within Iqaluit or Nunavut Long term reductions to the cost of fuel increase overall financial prosperity of Iqaluit leading new unforeseen job growth across all sectors. Existing employees with diesel experience get retrained with new hydro electric related skills and local skill capacity is increased New skills and opportunities created are retained for future energy projects or other local construction efforts Skills gained for short term employees could to be turned into ongoing opportunities for projects improving the local infrastructure 54

55 d. Possible adverse impacts Positions end up temporary and employment gains are short term, workers may leave to take newly learned skills out of Nunavut. Funds spent training and hiring causes an outflow of money outside Iqaluit or Nunavut, investment in human capital is lost Lack of planning (making use of all the various financing and training mechanisms established) and lack of early preemptive actions could cause a loss of opportunities by not getting the proper training in time to reap the possible advantages of the Hydro Electric Project For one reason or another some existing workers skilled in diesel power generation can t migrate their skills and become unemployed Cross-cultural issues, tensions or misunderstandings due to a lack of understanding between employees of differing cultures e. Public participation results Once again the turn out and results providing an accurate sampling of local concerns regarding the employment opportunities was relatively low. That being said those that responded did form a pattern that seems to reveal common threads. The results can be viewed in summary in Appendix 3 while the full spreadsheet results are available from Enokseot Holdings Inc. upon request. Preference should be given to local Inuit There did not appear to be fears of job losses There did seem to be a resounding belief that proper forward planning could diminish or negate possible negative downward trends in employment All but one felt that the positive overall employment impact outweighs any negative impacts that may occur It would create many short term and long term employment opportunities Overall people seem to believe in the project and the opportunities it can create and its success is dependent on proper planning and the considerations to Inuit. 55

56 f. Mitigation Improvements and Enhancements Early planning to ensure success of described positive impact and reduction of negative Early completion of an Inuit Impact Benefits Agreement A sustained measuring and monitoring of the success of efforts of be set forth in a Socio Economic Monitoring Agreement (see Diavik sample Appendix 4, full documentation can be found at Improved and sustained efforts to improve language training Early commitments to funding to get local human resource capacity up to speed to work with technology, tools and processes relating to the construction and operation of the hydro development project Further consideration of spin-off opportunities such as the establishment of the project area as a center for tourism and local culture Take steps to ensure new skills and opportunities created are retained for future energy projects or other local construction efforts Discuss with local officials and government ways of taking the skills gained for short term employees and turning them into ongoing opportunities for projects improving the local infrastructure etc. Flexible work schedules to minimize disturbances to families and provide access to cultural events Cross-cultural awareness training to enhance employee relationships 56

57 4. Investment Opportunities The most obvious investment opportunities would be investments in companies that wish to provide goods and/or services to any phase of the hydro-electric project. This could be to consulting businesses during the planning phase, construction companies during the actual construction of the dam and maintenance companies during post construction periods. The type and magnitude of business opportunities generated by these new demands would likely be unexpected to most local businesses. Or alternatively if they are expected it may be that the timeframe is too short to generate capital for providing expanded services via current operating dollars. So, In order for them to take advantage of the opportunities, and for QEC to take advantage of local suppliers of goods and services, they may need to obtain financing. This need for timely financing alternatives can create investment opportunities for local investors. These investments could be facilitated by means of loans or the purchase of partial ownerships in existing businesses. Ideally these debt/equity financing solutions would come from local investors. Obviously local investors would offer the economic picture of Iqaluit a triple win scenario QEC uses local businesses, local businesses increase their production/service capacity and employs local personnel and local investors earn revenue in the form of interest or % of profits. In general, while there is certainly a flow of funds, the flow is all local. The positive impact on the economy of Iqaluit is obvious and ideal. However, in a hypothetical scenario where all the needs for goods and services for this project were provided locally, there could be a far larger need for investors than the local community could provide. Alternatively, it would also be feasible for investors from the south to also look at these opportunities. The positive impact with non-local investors would be an increased ability in local businesses to take on larger roles, with the proper capital injections, without exhausting local investors. This would mean that local businesses were still being used, and under ideal operational and financial circumstances, local businesses would work towards one day buying out their non-local investors. This would be a gradual process of local businesses to provide all goods and services, with non-local investors used as a stepping stone. The negative side of this would of course be ownership/financing partners that are not local. A balance would have to be struck between what level of ability to serve the QEC project locally would be advantageous to the local economy vs what level of outside investors would defeat this purpose. More information would be required to draw any conclusions. A second significant opportunity for investment would be in local ownership of the hydro-electric facility itself. This could be a complicated financial undertaking. Local ownership of the dam could be accomplished by means of several investment options. This would obviously provide a sense of local pride and accomplishment, keep all investors local or regional and would contribute to one of the GNs priority for self reliance of Nunavummiut. Further analysis of this scenario would demonstrate this to be a viable option or not. 57

58 5. Population Sustainability Population projections indicate that the number of people in the city of Iqaluit will increase over the next twenty years to about 12,000 people. In an effort to achieve a sustainable and affordable community while maintaining the quality of life for residents, planning and development options must be prepared to respond to the increase demands that will result from the increasing population (City of Iqaluit General Plan, By-Law 571, 2005). In order to service more people, more or improved resources and facilities will be required. In recent years Iqaluit has been recorded as one of the fastest growing communities in Canada. As the 2001 census indicated there were 5,236 people which was a 24.1% increase since the 1996 census. As of the 2006 census, population was recorded at 6184 indicating the rate of growth had slowed to a rate of 18.12% over the five year period since the prior census. It is anticipated that the population will continue to grow over the next decades. Factors that contribute to population increases are fertility rate and in migration. Nunavut has the highest fertility rate and the youngest population in Canada; approximately 50 % of the population is twenty years old or younger. A young population will continue to have a high birth rate in comparison to the rest of the country. In addition, in 1999 Iqaluit experienced a large increase in migration of people coming to work in the Federal and Territorial Governments as the new Territory of Nunavut came into existence. This migration included people from southern Canada as well as people from other parts of Nunavut. Continued growth is anticipated based on these population dynamics. The rate of growth to 2022 for the City of Iqaluit ranging from low of 2.32% to high of 3.66% has been predicated by a number of organizations. The Conference Board of Canada in 2002 reported in Nunavut Economic Outlook growth to average 2.32% compounded annually over the next 20 years. Based on this rate of growth and the 2001 population of 5,500 the anticipated population by 2022 would be 8,919 (Refer to Table 5). This is considered to be a low rate of growth as the numbers people continue to migrate to Iqaluit from other Nunavut communities as well as from southern Canada. 58

59 Table 4: Population Projects to 2022 (Nunavut Economic Outlook, 2005, Table 1) In preparation of the Solid waste Management Plan Management Plan by JL Richards & Assoc. in 2002, population growth was projected at an average annual growth rate of 3.66%. This would result in a population of approximately 11,700 by In comparison to the other calculations this is considered to be a high estimate. The Government of Nunavut Bureau of Statistics produced varying population projections from 1998 to 2022 which may be more representative of the growth reality for the City of Iqaluit. Between 2000 and 2005 growth would be 3.5%, decreasing to 3.0% for 2006 to 2015 and then decreasing further to 2.5% from 2016 to Based on the Nunavut Bureau of Statistics projected growth rates it is anticipated that the population will be approximately 10,000 people by This is considered a medium projection and likely the most accurate given the natural growth and development of the community. However there are other factors that may lead to a sudden, unanticipated increased in the population projection; this may include new developments such as a military base in Iqaluit or the mineral industry. A new mine near Iqaluit or on Baffin Island will significantly change the demand for people and services in Iqaluit or moving through the community. These factors have not been taken into consideration in the anticipated growth rates described above, however at this point in the life of Iqaluit there are not any definite indicators that this type of growth will go forward. Factors that may reduce or slow the population growth are government policies such as increasing rent or not providing housing for government employees. These conditions make it more difficult to live in Iqaluit and make employment in Nunavut less attractive to people from southern Canada where other employment opportunities are abundant. 59

60 Similarly with increased cost for accommodation, people from Nunavut will find it difficult to pay the housing costs based on present government salaries. While this will not result in an overall population decrease it may result in fewer people from the communities being attracted to Iqaluit. 60

61 6. Services and Infrastructure Social Services a. Health Care Current needs of local health care services are in high demand in Iqaluit and the surrounding region. Iqaluit is a hub for all kinds of social services and therefore receives the greatest strain. It is however a situation in transition and progress has certainly been made with the opening of a hospital in Iqaluit. One of the highest costs relating to treating the medical needs of Nunavummiut has been the need for travel to southern facilities to receive the treatment that was required. These improvements, like others to the social services of Iqaluit and Nunavu, serve to build on the previously mentioned mandate of Government of Nunavut priorities described in the Pinasuaqtavut document and the vision of life in Nunavut in Some of the biggest challenges remain in dealing with the high numbers of lung cancer due to smoking, the rate of suicide and the child birth rate. Through consistent efforts to educate young and old of the dangerous effects of certain health affecting choices, improvements are likely to follow. Nunavut s overall health indicators could serve as a reference point to help understand the key factors that are currently affecting the overall territory and what items to address on the local level. These indicators are listed below in Table 5: Key Health Indicators as reported in the 2OO5 Nunavut Economic Outlook. Table 5: Key Health Indictors (2005 Nunavut Economic Outlook, Table 3) The evidence of the overall health of Nunavummiut is not all bad. Nunavut has low rates of heart attacks and breast cancer. The trend of tuberculosis continues to drop, 61

62 with 2005 being an exception, while the prevalence of diabetes remains lower than the Canadian average. Second, and most importantly, much of Nunavut s poor health is preventable and can be overcome by focusing on preventative measures and the determinants of health which include income, education and literacy, personal health practices, healthy child development, social supports, and physical and natural environments. For instance, Nunavut has the highest rate of deaths in the country due to unintentional injuries such as motor vehicle accidents,drowning, burns and poisoning. These are all deaths that are preventable (Nunavut Economic Outlook, 2005). b. Potential positive impacts Overall it is not anticipated that the hydro electric project will cause any likely strains on the local health infrastructure either in the short term or in the long term as the overall size of the project in terms of people impacted as compared to the current population. Even assuming there is little impact, the possibilities must still be explored for potential impacts. In the long term money saved from fuel cost savings could allow government to redirect funds to support local infrastructure expansion. A cleaner environment means potentially healthier country foods and potentially healthier people and less strain on mental and physical health support systems. Pride in local accomplishments of an Inuit self sustaining energy project can bring feelings of prosperity. Increased prosperity can ease depression, alcohol abuse, and domestic violence easing social support systems. New skills gained by hydro construction workers could be employed to build new and improved medial buildings throughout Nunavut c. Potential adverse impacts Adverse possibilities discussed in the health and well being section cause burdens or strains on the current health infrastructure An industrial accident during or post construction resulting in contamination to the environment and food chain could result in untold strains on local health infrastructure. 62

63 d. Mitigation Improvements and Enhancements Given the dependence and close ties of the people to the land, close monitoring and enforcement of safety protocols must be maintained especially during construction to avoid the possibility of industrial accidents and contamination to the environment. Employee awareness programs should be put in place on all aspects of improving health and safety to avoid any burdens to local health infrastructure 63

64 7. Services and Infrastructure Education As with other aspects of Nunavut s efforts to improve the local infrastructure strides have been made to improve the education system both within Iqaluit and across Nunavut. With roughly half the population under 20 the need for continual commitments to improvements to the education landscape are of paramount importance to the future prosperity of Nunavut. A snapshot of the recent status and improvements as described in the 2005 Nunavut Economic Outlook: No fewer than 15 communities (out of 25) received or are set to receive some form of upgrades to their education facilities. This includes the replacement of Jonah Amitnaaq School in Baker Lake as well as Joamie School in Iqaluit, which was destroyed by fire. The most recent budget included $2.9 million worth of sprinkler system upgrades for all school facilities in hopes of averting another loss due to fire. Access to education has also improved over the past two years through investments in accommodations for students attending Nunavut Arctic College in Iqaluit, Rankin Inlet and Cambridge Bay. All told, $75 million will have been spent on education facility renovations, upgrades and replacements over the three-year fiscal period from to a. Positive potential impacts This project is not intended to be a positive shot in the arm to all things within Iqaluit and Nunavut, but education is one area where this project can be a source of leadership and a model for future projects. The best case scenario would be an effort to improve education which leads to lasting employment opportunities. This could be executed by a co-operation in the planning for, and investment of, funds from local and regional governments in education improvement initiatives. Early co-operation between QEC, Arctic College, and private sector training facilities could serve to establish programs to equip graduates and local workers with new skills that could serve in the construction of the hydro construction project and ongoing operations. If success of the training and retraining initiatives were successful, it could fuel further funding and further developments in education. Long term fuel savings to Iqaluit and Nunavut could free up funds that could be redirected to education and job training for the young population b. Mitigation Improvements and Enhancements The establishment of educational recruitment programs and materials similar to that of Hydro One s Trade-up for success program which gives opportunities to students right out of high school and is particularly good for those who do not intend to continue into any higher levels of education. Additional information on career paths relating to power generation is also available from the Electricity Sector Council website 64

65 The establishment of new, or support of existing, mentoring programs to foster further education and work experience in all sectors that can support a self sustaining community and region. 65

66 8. Services and Infrastructure - Housing Availability and Affordability The shortage of affordable housing in Iqaluit has been an issue for a number of years and will continue to be a problem in the foreseeable future given the population growth of the community and the high cost of housing construction. According to the 2001 census there was approximately 2105 housing units in Iqaluit with an additional 138 units built in 2002 for a total of 2,243. At that time the average household was estimated to be 2.6 people which is a significant drop from 3.8 persons per unit in Again, with the growing population of young people there will continue to be a high demand for housing. These figures do not accurately reflect the serious housing issues where a disproportionately large number of people live in crowded housing conditions. The need for low income housing and affordable housing is a major issue in the city of Iqaluit; it is not anticipated that these requirements will change in the near future. 66

67 9. Services and Infrastructure Physical Infrastructure a. Road/Traffic Safety According to findings of the recent 3 Transportation and Urban Design Study, road and traffic safety are in urgent need of improvement. The needs are based on decreasing the number of conflicts between snowmobiles (preferred method of winter transport), pedestrians and automotive traffic. Below are some of the recommendations and items needing to be addressed as they relate to pedestrians snowmobiles and other vehicles: Sufficient right-of-ways- need to be provided to ensure that snow accumulations alongside the road do not interfere with sidewalks Improve sightlines for cars and on snowmobile routes Making pedestrian crossings visible Reduce speeds along major routes to allow for pedestrian crossings Formalize and separate snowmobile routes from roads and pedestrian walkways Improve sightlines along snowmobile routes to minimize conflicts between vehicles and pedestrians Provide adequate signage along routes and at crossings Roadway maintenance is one the city s largest budget costs as continual grading of gravel roads is necessary from spring to fall. Existing paved roads receive overloading due to drivers avoiding unpaved roads in poor condition. b. Transportation Systems Local transportation for the public is made up of private transportation such as personal vehicles and snowmobiles as well as public transportation via local taxi services. The Iqaluit Public Transit system operated from 2002 to 2005 to provide public transportation in Iqaluit. Mounting costs and low ridership forced city council to cancel the service in late 2004 and it ceased operations in January (Wikipedia, 2007) c. Utility Systems Utilities in Iqaluit are a combination of trucked and piped sewer and water. The requirement to have water and sewage trucked to and from houses on a daily basis is an energy intensive process with an ongoing high cost for maintenance. Construction of utilidor or piped services has a high initial development cost by comparison, but a much lower ongoing maintenance cost over the years. At present about 62% of the city s buildings are connected to the piped utilidor system with about 38% using trucked services. The City of Iqaluit s philosophy based on the 2003 community plan is for new development to be connected to the piped utilidor system. As mentioned earlier, initial construction cost for this service is very high. Consequently, new subdivision development would need to be planned well in advance in anticipation of such growth so that community plans and the 3 By the Office for Urbanism, Marshall Macklin Monaghan, and John Laird Associates, for City of Iqaluit s Planning and Lands Dept. 67

68 need for design and materials could be prepared and ordered well in advance to ensure a smooth growth transition through this intense period of activity. d. Potential positive impacts Given the relative number of hydro electric project workers needed against the overall population, it is not anticipated to cause any likely strains on the local physical infrastructure either in the short term or in the long term. This is especially true if workers are from the local population then it is roughly the same population that is using current infrastructure. The aging of the young population, increasing use of cars and climate change are the likely future strains on the infrastructure. Even assuming there is little impact from the project itself, the possibilities must be explored for potential impacts nonetheless. In the years to come it is anticipated that the savings gained in fuel costs will be substantial. There is the potential that the city could re-apportion funds to improving elements of the city s infrastructure. These funds could improve everything from road surfaces and traffic safety systems to public utilities, community structures, and public recreation areas etc The construction skills gained by local workers during the hydro project construction could be hired in the future by local business or government to improve local physical infrastructure. e. Potential adverse impacts The lead up time to construction time and the operational times are spread out over many years so any formation of negative project impacts should be found through socio-economic monitoring allowing spotting of warning signs and the time to take appropriate action before systems reach a point of breakdown. Should the efforts of the project contribute to a local boom then it is possible that there could be a rapid increase of out of area population which could cause strains on an already strained infrastructure If not enough is done in time in terms of training and hiring local Inuit and non-inuit locals for the hydro project construction phase leaving workers to be brought in from outside areas, then this would negating the possibility of using locally gained new skills toward infrastructure improvements in the future. 68

69 f. Mitigation Improvements and Enhancements Early planning and establishment of funding and development of new and ongoing training and education of local Inuit and non-inuit are key to the strengthening of local and regional capacity. Forward planning and establishment of agreements and strategies with local government and businesses to continually employ those trained in the hydro construction project and to continue to make use of their skills for local needs. This would help minimize newly trained workers leaving Nunavut. Declarations and commitments to establish the fruition of the potential positive impacts within an IIBA Monitoring the success of IIBA commitments to secure and maintain ongoing benefits via a Socio-Economic Monitoring Agreement. 69

70 10. Land uses, and harvesting feedback & participation Some data was captured with the questionnaires that were returned and it presented below. Participants were asked to describe their land use per site out of the following: Question 32A Considering the sites below, which of the following describes how you use the areas? TOTAL Armshow River Jaynes Inlet Cantley Bay Not Applicable Hunting - Traditional uses Hunting - Recreational uses Hunting - Commercial uses Fishing - Traditional uses Fishing - Recreational uses Fishing - Commercial uses Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking, etc Other uses not listed, please write below * Responses above represent results returned not visitors attending Even though the actual number of returned questionnaires and public feedback was less than anticipated, there are clear preferences among those who did respond in answering Question 32A. Worth noting below, participants felt that there may be adverse impacts to the fish and water, due to construction efforts occurring mainly in the coastal areas of both Armshow River and Jaynes Inlet. Question 38 TOTAL Talking specifically about fishing in the area, please place an "I" for inland waters and "C" for coastal waters in each box that you feel to be true. Armshow River Jaynes Inlet Cantley Bay Not Applicable The area would not be accessible for fishing because of construction. C (4) I (2) C (3) I (1) - 1 The area would not be accessible for fishing because the fish environment would change and reduce the levels of fish The water quality would deteriorate changing the environment completely and impact fishing The area would be crowded with people and construction and I would prefer not to go there. C (2) I (0) C (1) I (0) 0 1 C (4) I (3) C (3) I (0) C (1) I (1) 0 C (3) I (1) C (2) I (2) C (1) I (1) 1 C (13) I (6) C (8) I (3) C (2) I (2) 3 70

71 It appears that the outcomes of future fish studies and the environmental assessments will need to be presented in future consultations to assess the situation further. Proper steps to mitigate these concerns will need to be based on those findings. The overall concerns of land users is not believed to be fully captured at this point due to the lack of overall participants returning questionnaires, while others appear to be holding back feedback until the results of environmental studies. It is recommended that further consultations be done in the form of individual interviews and small focus groups. These methods have proven to be the most effective while public meetings and return of questionnaires presented the least fruitful for qualitative or quantitative data on the subject. Inuit history and culture has a deep dependant connection to the land, lakes, rivers and ocean. It serves as an essential component to quality of life to all Inuit. It is to frame the importance of future study and additional consultation that is needed to ensure that any potential adversities can be preemptively found and minimized or negated. It demonstrates the very importance of including the social aspects of the assessment processes. Further efforts will be needed to maintain efforts of communication with land users and those who represent the hunters, trappers and fishers who harvest from the land, and the waters of the region. Ongoing efforts could involve additional private interviews or small focus groups as well as any additional new methods that may look at more traditional or cultural ways of sharing of ideas among Inuit. 71

72 Final Thoughts Summary of comments from survey respondents Keep the environment clean on land and sea Less greenhouse gases released into the environment I like the plan of hydro electric dam I'm hoping to see this project go ahead real soon There could be some pressure during the building cycle i.e. housing, social concerns, but this could be mitigated by good social planning and education I believe it would make life better in the north reducing the price burden on people It would leave a footprint but that would be offset by a reduction in greenhouse gases Tradespeople/construction workers from south/outside territory will impact crime/drugs/alcohol For the long term I would like to see hydro electricity but I am unsure what all the impacts long term would be Hope to be a part of construction with my business More Inuit employment I believe at this time it is early in the game for me to decide I don't have enough info to make an informed answer Cheaper power rates, cheaper electricity, stabilize power rates, lower fuel prices, cheaper power bill 72

73 References Canadian Electricity Association, Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance: Electricity Industry Practices, Section 2: Overview of Hydro Facility Operation and Maintenance, Canada. Environmental Impact Statement for the MacKenzie Gas Project, Volume 6: Part C, April Socio-Economic Impact Assessment: Fort McPherson Community Report, IPRCC.PR Fotenn Urban Planners & Designers for City of Iqaluit, Consolidated August City of Iqaluit General Plan, By-Law 571, Iqaluit, Nunavut. Government of Nunavut, Pinasuaqtavut , ISBN Government of Nunavut, Government of Canada, 1993 Nunavut Land Claims Agreement. Impact Economics (Graeme Clinton and Stephen Vail) for Nunavut Economic Forum, July Nunavut Economic Outlook: Update on Five Years of Progress, Yellowknife, Northwest Territories. JL Richards & Assoc Solid waste Management Plan Management Plan. Knight Piésold Consulting for Qulliq Energy Corporation, October Iqaluit Hydro-Electric Generation Site, Phase II Pre-Feasibility Report, Vancouver, British Columbia. MacKenzie Valley Environmental Impact Review Board, March Socio-Economic Impact Assessment Guidelines, Yellowknife, Northwest Territories. Miramar Hope Bay Limited (MHBL) for Nunavut Impact Review Board (NIRB), July Socio- Economic Culture Summary (Appendix), North Vancouver, British Columbia. 73

74 QEC Research Bibliography Nunavut Government Statistical Reports NU labour force questionnaire 99 NU labour force critical labour force review NU labour force 2006 Population projection by community NU 2001 census Housing Population Statistics, 2006 Land Use Information Series Maps map #N Bayswater Consulting Group Inc., Nunavut Housing Requirements, Needs and Demands to 2016, background report for the Ten-Year Nunavut Housing Strategy, Government of Nunavut and Nunavut Tunngavik Incorporated, March Buell, Mark, Resource Extraction Development and Well-being in the North, a scan of unique challenges of Development in Inuit Communities, Ajunnginiq Centre, National Aboriginal Health Organization, June City of Iqaluit, The City of Iqaluit s Climate Change Impacts, Infrastructure Risks and Adaptive Capacity Report, March, Conference Board of Canada, 2005 Nunavut Economic Outlook Update on Five Years of Progress by Nunavut Economic Forum, July 2005 Guidelines for Developing Effective Health and Safety Programs Worker Compensation Board NWT/NU Government of Nunavut and Nunavut Tunngavik Incorporate, Nunavut Ten-Year Inuit Housing Action Plan, Sept, 2004 Nunavut Adult Learning Strategy by GN, NTI ISBN NNI Nangminiqaqtunik Ikajuuti (NNI) April 20, 2006 Nunavut Legislative Assembly, Standing Committee on Health and Education, report on the review of Nunavut Arctic College, June, 2006 Robert Hornal and Associates Ltd., A Socio-economic Impact Assessment of the Proposed Jericho Diamond Project in the North Slave Geological Province Nunavut, prepared for Tahera Corporation, January

75 Web Sources (Photo of Iqaluit) ( ( ang=en&c=finance)

76 Appendix 1 Socio-Economic Impact Assessment Questionnaire for Community Feedback For Qulliq Energy Corporation January 2008

77 Iqaluit Hydro Electric Development Project Socio-Economic Impact Assessment Getting Your Feedback

78 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Purpose of this survey The purpose of this survey is to collect information for the socio-economic impact assessment being performed for Qulliq Energy Corporation (QEC). This socio economic impact assessment will evaluate and collect feedback from the people in and around Iqaluit with respect to the proposed Iqaluit Hydro electric development project. QEC is placing a great deal of importance into community involvement to make sure everyone is heard, from local business owners to long term respected elders as well as hunters, trappers, fisherman and other land users. As part of the plans for a strong self-sustaining future for all Nunavummiut we must all work together as a community to build that future. If in one of the questions you are asked to write something you may feel you want to write more than the space allows, in this case simply turn over that page and write the question number followed by what you wish to write and note this in the space provided on the front of the sheet. As you make your way through the questions, you may find certain questions or sections do not apply to you or you would simply prefer not to answer, simply proceed to the next section. Thank you for making the time, let s get started

79 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Length of time in the community 1. Which type of Iqaluit resident are you? Long term Inuk resident (5 years or more) Inuit family or individual relocated to Iqaluit Short-Term transient /temporary or seasonal working family or individual in Iqaluit Long term non-inuk resident (5 years or more) Non-Inuit family or individual relocated to Iqaluit Community Elder Other specify Your place in the community 2. What is your age category? (If you prefer not to answer skip this question.) and over 3. Which describes you? Full-time worker Part-time worker Student Unemployed 4. If you are here representing a special interest group, organization or department please state your list it s name, your position or title below. Organization/Group/Department Position/Title 5. How many people live in your household? How many people under the age of 25?

80 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Health, home and local community 6. In general terms, how much do you agree with the following? Strongly No Strongly Regarding health, home and local community Agree Agree Opinion Disagree Disagree I have concerns of how the project will affect my family I am afraid the project will lead to an increase in crime I am worried the project could affect local health care services I am worried about unforeseen health risks Less pollution will make us all healthier I am happy future generations will have cleaner air I believe hydro electric power generation proposes a health risk There are high levels of stress in my home often I feel drugs & alcohol are a problem among adults in Iqaluit I feel drugs & alcohol are a problem among youth in Iqaluit I have seen co-workers have trouble with alcohol or drugs A portion of my income or family income goes to drugs or alcohol I spend too much money on things that are bad for my health Family violence breaks out in my house under times of stress Money is a big source of stress for me I wish I had better job skills, more training I wish I had a more secure job I wish I had more education 7. Which of the following are most important to you? (Please check all that apply) Keeping traditional ways Respect of elders Impact on the environment Preserving wildlife habitats Religion Family Money Good health Traditional Inuit games Sports Preserving language Preserving history Fishing Hunting Eliminating local poverty The future of Iqaluit Eliminating crime Good nutrition Safety and security

81 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Health, home and local community 8. I have concerns that the following periods would lead to a negative trend in Regarding health, home and local community 5 Year Period During Construction 5 Year Period After Construction 50 Year Period After Construction Crime Health care service response times Unforeseen health risks Air pollution Water pollution Overall levels of stress in my home Use of drugs or alcohol General cost of living Family or domestic violence Personal financial difficulties Availability of job training Job security Affordable education Vehicle traffic near my home Local noise levels Increased air traffic Available affordable housing Loss of Inuit culture, traditional was, language etc. Local poverty 9. Do you believe the hydro electric development project will have an impact on your family life? (Circle your answer) Yes / No Please describe how and why you feel this way.

82 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Health, home and local community 10. Considering your surrounding community, describe your concerns, fears or comments about the impact of the proposed hydro electric development project? 11. Of the following areas being considered as possible sites, which of these do you feel would have greatest positive impact on the health and well being of you or your family? Jaynes Inlet / Qikiqgijaarvik Armshow River / Akulikutaq or Tungatalik Cantley Bay / Kangalait 12. Of the following areas being considered as possible sites, which of these do you feel would have greatest positive impact on the health and well being of your community? Jaynes Inlet / Qikiqgijaarvik Armshow River / Akulikutaq or Tungatalik Cantley Bay / Kangalait 13. Please describe the effects that you think barge dock, the hydro-electric power plant and flooded area, powerhouse, access roads, path of hydro transmission lines will bring to the possible sites.

83 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Business and future opportunities 14. Of the following categories, which of these best describes your business? 100% Inuit owned More than 50% Inuit owned Non-Inuit owned business Does not apply (if you do not own a business proceed to the next section) 15. Local business planning and involvement? (Check ONLY one) I am heavily involved in local business planning I am somewhat involved in local business planning I am not involved in local business planning As a result of the proposed development, I plan to become heavily involved in local business planning I am not interested in what happens to other local business 16. If you own business, what is your sector(s) of business? (Please check all that apply) Accounting/Finance Advertising Air Charter Arctic Clothing Artist/Carver Arts/Entertainment Auto Repair/Bodywork Automotive Sales Boat Sales/Service Building Materials Catering Cleaning & Janitorial Consultant Construction Convenience Store Digital Communications Electrical Supplies Electrician Fishing Food Services Fuel Supply Gas Station General Contractor Graphic Design Heavy Equipment Supply Home Builder Hotel/Hospitality Housing Rental Hunting Internet Services Job Training Language Translation Marine Shipping Marketing/Comm. Mechanical Supplies Office Supplies Pharmacy Photography Post Office Real Estate Retail Sales Sealift Snow Clearing Snowmobile/ATV Sales/Rental Tourism/Outfitting Truck Rental

84 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Business and future opportunities 17. How much do you agree with the following? Strongly No Strongly Regarding business Agree Agree Opinion Disagree Disagree The hydro-electric project will hurt my business The hydro-electric project will hurt certain businesses It will create numerous business opportunities I am concerned about short term affects to local business I am concerned about long term affects to local business It will create numerous Inuit owned business opportunities It will create opportunities for my existing business This will improve my heating costs This will create long term opportunities for my business sector This will create short term opportunities for my own business This will be good for the people of Nunavut This will be good for the people in and around the Baffin region This will be good for the people of Iqaluit This will improve my bottom line Out of region business influx will hurt local business This will improve local competition I am concerned that new businesses created as a result of development will displace or harm existing businesses Development will cause investment into territorial businesses Development will cause investment into Baffin area businesses Development will cause investment into Iqaluit businesses When development is complete it will cause a downward trend in the local economy Proper business planning now could prevent a downward economic trend I believe that the positive overall business impact outweighs any negative impacts that may occur 18. As it relates to the list of previous questions you just answered, describe your concerns, fears or comments about the proposed hydro electric development project?

85 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Business and future opportunities 19. If you are a shareholder in a local, regional or territorial business, what category is it in? Does not apply to me (skip to next section) Local Regional Territorial 100% Inuit owned More than 50% Inuit owned Non-Inuit owned business 20. How much do you agree with the following? Strongly No Strongly Regarding investment into local business Agree Agree Opinion Disagree Disagree The hydro-electric project will hurt my investments The hydro-electric project will hurt certain investments I have It is likely there will be investment opportunities for me This project will not likely create investment opportunities for me I foresee short-term opportunities for me (get in/get out) I foresee long-term ongoing investment opportunities for me It will create investment opportunities for local Inuit It will create investment opportunities for regional Inuit It will create investment opportunities for territorial Inuit This is likely to cause a lack of investment in other sectors This will create a decrease in investments in other communities A decrease in investments in other communities be long-term A decrease in investments in other communities be short-term Development will cause investment into Iqaluit businesses Development related investments will create new businesses, new jobs, and boost the local economy for the long-term Development related investments will create new businesses, new jobs, and boost the local economy for the short-term I believe that the positive overall gains from new investment outweighs any negative impacts that may occur There should be incentive programs from local, regional or territorial levels to help businesses or intervals invest in development related businesses I feel good about the overall investment opportunities that will arise from the Hydro electric development project

86 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Business and future opportunities 21. As a business owner I would be most in favor the following site: Jaynes Inlet / Qikiqgijaarvik Armshow River / Akulikutaq or Tungatalik Cantley Bay / Kangalait Don t care Undecided I would need more information before I could decide 22. If you chose one of the sites above over another what is your primary reason for making this choice? 23. A) Are you in the tourism business in Iqaluit and the surrounding area Yes/no B) If yes, do you feel this proposed hydro electric power plant will have a positive or negative affect on your efforts Positive/negative C) If negative, do you feel this affect will be permanent or temporary (i.e. construction period only) Permanent/temporary D) Which of the site(s) do you feel would be impacted? Cantley Bay/ Jaynes Inlet/ Armshow River

87 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Employment opportunities 24. Do you feel that your job or current skills would provide you with a job directly or indirectly related to the hydro electric development project construction period? Yes/No If no, what skills or job training would you need to help find related employment? 25. From the list below please tell us what sector of business you are employed in? (If you have more than one job, please check all that apply) Accounting/Finance Advertising Air Charter Arctic Clothing Artist/Carver Arts/Entertainment Auto Repair/Bodywork Automotive Sales Boat Sales/Service Building Materials Catering Cleaning & Janitorial Construction Consultant Convenience Store Digital Communications Education Electrical Supplies Environment related Electrician Fishing Food Services Fuel Supply Gas Station General Contractor Government Graphic Design Heavy Equipment Supply Home Builder Hotel/Hospitality Housing Rental Hunting Internet Services Inuit Organization Job Training Language Translation Marine Shipping Marketing/Comm. Mechanical Supplies Non-profit Office Supplies Pharmacy Photography Post Office Real Estate Retail Sales Sealift Snow Clearing Snowmobile/ATV Sales/Rental Tourism/Outfitting Other 26. Which of the following best describes your employment situation? Long-term local resident worker Came to work in Iqaluit from within Nunavut Came to work in Iqaluit from outside Nunavut Came to work in Iqaluit from outside Canada

88 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Employment opportunities 27. A) Are you in a position of hiring/firing employees and/or maintaining a staff from human resources in Iqaluit? (Please circle) Yes/No B) If Yes, do you feel the construction period of this hydro-electric power plant will have a positive or negative affect on your available resources (Please circle) Positive/Negative 28. How much do you agree with the following statements? Strongly No Strongly Regarding employment Agree Agree Opinion Disagree Disagree The hydro-electric project will create new short term jobs The hydro-electric project will create new long term jobs I am concerned about short term affects to my job security I am concerned about long term affects to my job security Hiring priority should be given to local Inuit Specialized job training should be given to local Inuit I am concerned over existing diesel generation related jobs Out of region hiring influx will hurt local hiring I am concerned that new jobs created as a result of development will displace or harm existing jobs When development is complete it will cause a downward trend in the local employment Proper planning now could prevent a downward unemployment trend later I believe that the positive overall employment impact outweighs any negative impacts that may occur 29. Please describe any particular feelings, concerns or fears you have with regards to employment that relate to the proposed hydro electric development project?

89 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 30. Please answer the following: Armshow Cantley Not River Jaynes Inlet Bay Applicable Which area are you most familiar with? I have the most questions about hydro electric development at I know people who are land users of I have significant knowledge about I know someone with significant knowledge about I have the most concerns about development at 31. If you have concerns about any of the possible sites mentioned please describe them below. 32. A) Considering the sites below, which of the following describes how you use the areas? (Check all that apply) Armshow Cantley Not River Jaynes Inlet Bay Applicable Hunting Traditional uses Hunting Recreation uses Hunting Commercial uses Fishing Traditional uses Fishing Recreation uses Fishing Commercial uses Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking etc. Other uses not listed, please write them below.

90 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment B) Please describe any other reasons you use the above sites and describe which areas you use them for. Armshow River / Akulikutaq or Tungatalik: Jaynes Inlet / Qikiqgijaarvik: Cantley Bay / Kangalait:

91 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 33. A) Given your answers above, which of the following do you feel may be impacted in a way that concerns you? (Check all that apply) Armshow Cantley Not River Jaynes Inlet Bay Applicable Hunting Traditional uses Hunting Recreation uses Hunting Commercial uses Fishing Traditional uses Fishing Recreation uses Fishing Commercial uses Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking etc. Other uses not listed, please write them below. B) Now considering those concerns or impacts, please describe them below, for each location. Armshow River / Akulikutaq or Tungatalik: Jaynes Inlet / Qikiqgijaarvik: Cantley Bay / Kangalait:

92 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 34. A) Considering the sites and land uses below, where do you primarily use the land? (Check all that apply) Armshow Cantley Not River Jaynes Inlet Bay Applicable Hunting Coastal areas Hunting Inland areas Fishing Coastal waters Fishing Inland waters Religious or spiritual significance - Inland areas Religious or spiritual significance - Coastal areas Cabin or camp usage Inland areas Cabin or camp usage Coastal areas Clam digging Inland areas Clam digging Coastal areas Berry picking Inland areas Berry picking Coastal areas General recreational uses, hiking, canoeing, kayaking etc. General recreational uses, hiking, canoeing, kayaking etc. Other uses not listed, please write them below. B) If there are uses that are specific to inland, coastal areas or coastal water please list them below. Armshow River / Akulikutaq or Tungatalik: Jaynes Inlet / Qikiqgijaarvik: Cantley Bay / Kangalait:

93 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 35. Considering how you use the land and waters in and around the sites mentioned is access to these sites difficult? Yes/No (please circle) 36. If development of these areas leads to the construction of a road or seaport and improved your access which of your land uses would increase? Armshow Cantley Not River Jaynes Inlet Bay Applicable Hunting Fishing Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking etc. Other uses not listed, please write them below. 37. A) Considering the following locations, which do feel may suffer the most from construction, i.e. building roads, shipping equipment, hydro-electric power plant construction, boat and air traffic etc. (Check all that apply) Armshow Cantley Not River Jaynes Inlet Bay Applicable Fish Birds Polar Bear Caribou Walrus Seals Whales

94 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment B) Please describe any other land or sea life that you have concerns about in the areas below. Armshow River / Akulikutaq or Tungatalik: Jaynes Inlet / Qikiqgijaarvik: Cantley Bay / Kangalait:

95 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 38. Talking specifically about fishing in the area, please place an I for inland waters or a C for coastal waters in each box that you feel to be true. The area would not be accessible for fishing because of construction The area would not be accessible for fishing because the fish environment would change and reduce the levels of fish The water quality would deteriorate changing the environment completely and impact fishing The area would be crowded with people and construction and I would prefer not to go there Armshow River Jaynes Inlet Cantley Bay Not Applicable 39. Do you feel that if your concerns over the affect on the fish were realized, that this would be a (Check all that apply) a. Temporary situation (i.e. after construction things would return to a new normal) b. Permanent situation (i.e. things would never be the same) c. Temporary if certain steps were taken to ensure the environment of the fish was protected If you ticked 3, what steps do you think could be taken when building the hydro-electric power plant that could protect the environment of the fish?

96 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 40. Talking specifically about hunting in the area, please place an I for inland land areas or a C for coastal land areas in each box that you feel to be true. The area would not be accessible for hunting because of construction The area would not be accessible for hunting because the animal s environment would change and reduce the levels of available animals to hunt The water quality would deteriorate changing the environment completely and impact hunting The area would be crowded with people and construction and I would prefer not to go there Armshow River Jaynes Inlet Cantley Bay Not Applicable 41. A) Do you feel that if your concerns over the affect on the animals hunted were realized, that this would be a (Check all that apply) Temporary situation (i.e. after construction things would return to a new normal) Permanent situation (i.e. things would never be the same) Temporary if certain steps were taken to ensure the environment of the fish was protected B.) If you ticked 3, what steps do you think could be taken when building the hydro-electric power plant that could protect the environment of the animals that are hunted?

97 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Land use and the environment 42. Please select your level of concern about the following: Not Somewhat Extremely Possible environmental impacts such as Concerned Concerned Concerned Air quality Climate change, including the effects of climate change interacting cumulatively with the predicted environmental effects of the project and the project s contribution to climate change; Uncertainty regarding the restoration of wetlands Biological diversity The cumulative environmental effects of existing and new development Disturbance to unique sites or special features (e.g., protected areas; Environmentally Significant Areas, etc.); 43. Are you a cabin or camp owner? If yes please identify your level of concern below. If no skip to the next section. Not Somewhat Extremely Concerned Concerned Concerned Flooding near my cabin or camp Water levels dropping in the area Transmission lines passing through my area The increase of vehicles near my cabin or camp The influx of people near my cabin may lead to theft or break-ins Other (specify)

98 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Final thoughts 44. Considering everything you ve now heard, read, and answered, do you feel that you prefer the development would proceed at one location to the other? Please tell us which site and why you feel that way. 45. If you could name the one thing you would hope to gain from the hydro development project what would it be? 46. If you have any final question, comments or concerns about what you ve heard, seen or read related to the proposed developments of any of the locations, please write them below.

99 Iqaluit Hydro Electric Development Project Getting Your Feedback For Qulliq Energy Corporation Thank you for making the time, one last thing We thank you for taking the time and giving us your thoughts on the Iqaluit Hydro electric development project. The answers and comments you provide will allow Qulliq Energy Corporation to better address local concerns and take steps to work with communities, local organizations, local government and land claim beneficiaries to make sure that we proceed in a safe and respectful way. If you would like to be included in any further consultations, interviews etc please indicate below what you would like to be included in and how we may best contact you in the future. 47. In what capacity would you liked to be involved with in the future? I would be happy to do another related survey in the future I am happy to be involved in interviews in the future Yes please keep me informed as to the progress of the project I would rather not participate in the future Other (please specify) 48. How should we contact you in the future? By regular mail By phone By Name: Address: Phone: For more information please visit Once again, we thank you for your time. Qulliq Energy Corporation

100 Appendix 2 Public Consultation Communications Website Screen, Poster and Powerpoint Presentation For Qulliq Energy Corporation January 2008

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139 Appendix 3 Results of Socio-Economic Impact Assessment Survey For Qulliq Energy Corporation January 2008

140 General Information For Survey Responses Meeting/Survey Responses Meeting 1 Public English Meeting 2 Cabin Owners Meeting 3 HTO Exec and Board Meeting 4 Gov't, Org, City Number of People in Attendance at Meeting no count Number of Surveys Distributed 0 Number of Completed Surveys Received Back Meeting 5 Elders Meeting 6 Public Inuktitut Meeting 7 Businesses Meeting 8 English Meeting 9 Kimmirut TOTALS % Response % 7.50% 0.00% 25.00% 0.00% 50.00% 12.50% 0.00% 0.00% 11.21% % No Response 0.00% 92.50% 0.00% 75.00% % 50.00% 87.50% % % 88.79% *includes QIA survey %

141 Time & Place In Community Question 1 Which type of TOTALS Iqaluit resident are you? Long term Inuit resident (5 years or more) 4 Inuit family or individual relocated to Iqaluit 2 Short-term transient/temporary or seasonal working family or individuals in Iqaluit 0 Long term Non-Inuit resident (5 years or more) 4 Non-Inuit family or individual relocated to Iqaluit 0 Community Elder 0 Other (list others noted) 0 TOTAL RESPONSES 10 NO RESPONSE 3 Question 2 TOTALS Age Age Age Age Age Age 66 and over 0 TOTAL RESPONSES 11 NO RESPONSE 2 Question 3 TOTALS Full Time Worker 10 Part Time Worker 1 Student 0 Unemployed (1 response is from Retired person) 1 0 TOTAL RESPONSES 12 NO RESPONSE 1 Question 4 TOTALS Organizations/Group/Dept Named 1 (list separately) 0 Position/Titles Named 0 (list separately) 0 0 TOTAL RESPONSES 1 NO RESPONSE Almiq Contracting Ltd., Owner/VP Question 5 TOTALS Number of People in Household 45 Number of People Under TOTAL 65 NO RESPONSE 1 *cumulative totals of household populations and people under 25 Survey Results_Time and Place in the CommunityTime Place in Community

142 Health, Home and Local Community Question 6 general terms, how much do you agree with the following? Strongly Agree TOTALS Agree No Opinion Disagree Strongly Disagree I have concerns of how the project will affect my family I am afraid the project will lead to an increase in crime I am worried the project could affect local health care services I am worried about unforeseen health risks Less pollution will make us all healthier I am happy future generations will have cleaner air I believe hydro electric power generation proposes a health risk There are high levels of stress in my home often I feel drugs & alcohol are a problem among adults in Iqaluit I feel drugs & alcohol are a problem among youth in Iqaluit I have seen co-workers have trouble with alcohol or drugs A portion of my income or family income goes to drugs or alcohol I spend too much money on things that are bad for my health Family violence breaks out in my house under times of stress Money is a big source of stress for me I wish I had better job skills, more training I wish I had a more secure job I wish I had more education In Question 7 of the following are most important to you? Which TOTALS Keeping traditional ways 9 Respect of elders 11 Impact on the environment 8 Preserving wildlife habitats 10 Religion 2 Family 9 Money 5 Good health 11 Traditional Inuit games 4 Sports 7 Preserving language 11 Preserving history 10 Fishing 10 Hunting 10 Eliminating local poverty 8 The future of Iqaluit 7 Eliminating crime 8 Good nutrition 9 Saftey and security 10 EDUCATION (added) 1 Survey Results_Health, Home and Local Community

143 Question 8 I have concerns that the following periods would lead to a negative trend in : 5 Year Period During Construction TOTALS 5 Year Period After Construction 50 Year Period After Construction Crime Health care service response times Unforeseen health risks Air pollution Water pollution Overall levels of stress in my home Use of drugs or alcohol General cost of living Family or domestic violence Personal financial difficulties Availability of job training Job security Affordable education Vehicle traffic near my home Local noise levels Increased air traffic Available affordable housing Loss of Inuit culture, traditional ways, language etc Local poverty Question 11 Which of the following area do you feel would have the greatest positive impact on the health and well being of you or your family? TOTALS Jayne's Inlet 3 Armshow River 4 Cantley Bay 4 0 Question 12 Which of the following area do you feel would have the greatest positive impact on the health and well being of your community? TOTALS Jayne's Inlet 3 Armshow River 3 Cantley Bay 3 0 Survey Results_Health, Home and Local Community

144 Business and Future Opportunities Does Not Apply 7 responses Question 14 Which best describes your business? TOTALS 100% Inuit Owned 1 More than 50% Inuit Owned 3 Non-Inuit owned business 0 Does not apply 5 Question 15 Local business planning and involvement TOTALS I am heavily involved in local business planning 1 I am somewhat involved in local business planning 3 I am not involved in local business planning 0 As a result of the proposed development, I plan to become heavily involved in local business planning 1 I am not interested in what happens to other local business 0 Question 16 If you own a business, what is your sector(s) of business? TOTALS Accounting/Finance 0 Advertising 0 Air Charter 0 Arctic Clothing 0 Artist/Carver 0 Arts/Entertainment 0 Auto Repair/Bodywork 0 Automotive Sales 0 Boat Sales/Service 0 Building Materials 1 Catering 0 Cleaning & Janitorial 0 Construction 1 Convenience Store 0 Digital Communications 0 Electrical Supplies 0 Electrician 1 Fishing 1 Food Services 0 Fuel Supply 0 Gas Station 0 General Contractor 1 Graphic Design 0 Heavy Equipment Supply 0 Home Builder 1 Hotel/Hospitality 0 Housing Rental 1 Hunting 1 Internet Services 0 Job Training 1 Language Translation 0 Marine Shipping 0 Marketing/Comm. 0 Mechanical Supplies 0 Office Supplies 0 Pharmacy 0 Photography 0 Post Office 0 Real Estate 1 Retail Sales 0 Sealift 0 Snow Clearing 0 Snowmobile/ATV Sales/Rental 0 Tourism/Outfitting 0 Truck Rental 0 0 Survey Results_Business and Future Opportunites

145 Question 17 How much do you agree with the following regarding business. Strongly Agree TOTALS Agree No Opinion Disagree Strongly Disagree The hydro-electric project will hurt my business The hydro-electric project will hurt certain business It will create numerous business opportunities I am concerned about short term affects to local business I am concerned about long term affects to local business It will create numerous Inuit owned business opportunities It will create opportunities for my existing business The will improve my heating costs This will create long term opportunities for my business sector This will create short term opportunities for my own business This will be good for the people of Nunavut This will be good for the people in and around the Baffin region This will be good for the people of Iqaluit This will improve my bottom line Out of region business influx will hurt local business This will improve local competition I am concerned that new businesses created as a result of development will displace or harm existing businesses Development will cause investment into provincial businesses Development will cause investment into Baffin area businesses Development will cause investment into Iqaluit businesses When development is complete it will cause a downward trend in the local economy Proper business planning now could prevent a downward economic trend I believe that the positive overall business impact outweighs any negative impacts that may occur Question 19 If you are a shareholder in a local, regional or territorial business, what category is it in? TOTALS Does not apply 3 100% Inuit Owned 1 More than 50% Inuit Owned 2 Non-Inuit owned business 0 0 Question 20 How much do you agree with the following regarding investment into local business. Strongly Agree TOTALS Agree No Opinion Disagree Strongly Disagree The hydro-electric project will hurt my investments The hydro-electric project will hurt certain investments I have It is likely there will be investment opportunities for me This project will not likely create investment opportunities for me I foresee short-term opportunities for me (get in/get out) I foresee long-term ongoing investment opportunities for me It will create investment opportunities for local Inuit It will create investment opportunities for regional Inuit It will create investment opportunities for territorial Inuit This is likely to cause a lack of investment in other sectors This will create a decrease in investments in other communities A decrease in investments in other communities be long-term A decrease in investments in other communities be short-term Development will cause investment into Iqaluit businesses Development related investments will create new businesses, new jobs, and boost the local economy for the long-term Development related investments will create new businesses, new jobs, and boost the local economy for the short-term I believe that the positive overall gains from new investment outweighs any negative impacts that may occur There should be incentive programs from local, regional or territorial levels to help businesses or intervals invest in development related businesses I feel good about the overall investment opportunities that will arise from the Hydro electric development project Question 21 a business owner I would be most in favour of the following site: As TOTALS Jayne's Inlet 2 Armshow River 1 Cantley Bay 2 Don't Care Undecided I would need more information before I could decide. Survey Results_Business and Future Opportunites

146 Employment Opportunities Question 25 What sector of business are you employed in (check all that apply) TOTALS Accounting/Finance 0 Advertising 0 Air Charter 0 Arctic Clothing 0 Artist/Carver 0 Arts/Entertainment 0 Auto Repair/Bodywork 0 Automotive Sales 0 Boat Sales/Service 0 Building Materials 1 Catering 0 Cleaning & Janitorial 0 Construction 1 Consultant 0 Convenience Store 0 Digital Communications 0 Education 1 Electrical Supplies 0 Electrician 1 Environment related 0 Fishing 1 Food Services 0 Fuel Supply 0 Gas Station 0 General Contractor 1 Government 4 Graphic Design 0 Heavy Equipment Supply 0 Home Builder 1 Hotel/Hospitality 0 Housing Rental 1 Hunting 2 Inuit Organization 2 Internet Services 0 Job Training 1 Language Translation 0 Marine Shipping 1 Marketing/Comm. 0 Mechanical Supplies 0 Non-profit 0 Office Supplies 0 Pharmacy 0 Photography 0 Post Office 0 Real Estate 1 Retail Sales 0 Sealift 1 Snow Clearing 0 Snowmobile/ATV Sales/Rental 0 Tourism/Outfitting 0 Truck Rental 0 Other - warehousing/logistics 1 Other 1 Other - carver 1 Other - retired 1 Survey Results_Employment Opportunites

147 Question 26 Which of the following best describes your employment situation? TOTALS Long-term local resident worker 4 Came to work in Iqaluit from within Nunavut 1 Came to work in Iqaluit from outside Nunavut 3 Came to work in Iqaluit from outside Canada 0 No response 1 Question 28 How much do you agree with the following regarding employment. Strongly Agree TOTALS Agree No Opinion Disagree Strongly Disagree The hydro-electric project will create new short term jobs The hydro-electric project will create new long term jobs I am concerned about short term affects to my job security I am concerned about long term affects to my job security Hiring priority should be given to local Inuit Specialized job training should be given to local Inuit I am concerned over existing diesel generation related jobs Out of region hiring influx will hurt local hiring I am concerned that new jobs created as a result of development will displace or harm existing jobs When development is complete it will cause a downward trend in the local employment Proper planning now could prevent a downward unemployment trend later I believe that the positive overall employment impact outweighs any negative impacts that may occur Survey Results_Employment Opportunites

148 Land Use and Environment Does Not Apply/Do Not Use Areas 3 responses Question 30 Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Which area are you most familiar with? I have the most questions about hydro electric development at I know people who are land users of I have significant knowledge about I know someone with significant knowledge about I have the most concerns about development at Question 31 -Armshow River part of the park, year round use by locak Inuk population, Katanilik Park Question 32A Considering the sites below, which of the following describes how you use the areas? Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Hunting - Traditional uses Hunting - Recreational uses Hunting - Commercial uses Fishing - Traditional uses Fishing - Recreational uses Fishing - Commercial uses Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking, etc Other uses not listed, please write below Question 32B -Armshow River cabin owner, daily existence/diet depends on area, collect for winter -Armshow River ski doo trail to Kimmirut -Jayne's Inlet - not very use -Cantley Bay caribou hunting, sea for travel to south -Armshow River too close to National Park -Jayne's Inlet, too many cabins close to the site -Cantley Bay - would have an impact during the winter to the people of Iqaluit Question 33A of the following do you feel may be impacted in a way that concerns you? Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Hunting - Traditional uses Hunting - Recreational uses Hunting - Commercial uses Fishing - Traditional uses Fishing - Recreational uses Fishing - Commercial uses Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking, etc Other uses not listed, please write below Question 33B -Armshow River is camping area for families more so than other areas -Fish/sea mammals and mercury levels -garbage & debris at site -Armshow River is used most Which Survey Results_Land Use and Environment

149 Question 34A Considering the sites and land uses below, where do you primarily use the land? Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Hunting - Coastal areas Hunting - Inland areas Fishing - Coastal waters Fishing - Inland waters Religious or spiritual significance - coastal waters Religious or spiritual significance - inland waters Cabin or camp usage - coastal waters Cabin or camp usage - inland waters Clam digging - coastal waters Clam digging - inland waters Berry picking - coastal waters Berry picking - inland waters General recreational uses, hiking, canoeing, kayaking, etc. - coastal waters General recreational uses, hiking, canoeing, kayaking, etc. - inland waters Other uses not listed, please write below Question 36 development of these areas leads to the construction of a road or seaport and improved your access, which of your land uses would increase? Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Hunting Fishing Religious or spiritual significance Cabin or camp usage Clam digging Berry picking General recreational uses, hiking, canoeing, kayaking, etc Other uses not listed, please write below If Question 37A Considering the following locations, which do you feel may suffer the most from construction, ie building roads, shipping equipment, hydro-electric power plant construction, boat and a Armshow River TOTAL Jaynes Inlet Cantley Bay Not Applicable Fish Birds Polar Bear Caribou Walrus Seals Whales Question 38 Talking specifically about fishing in the area, please place an "I" for inland waters and "C" for coastal waters in each box that you feel to be true. TOTAL Armshow River Jaynes Inlet Cantley Bay Not Applicable The area would not be accessible for fishing because of construction. C (4) I (2) C (3) I (1) - 1 The area would not be accessible for fishing because the fish environment would change and reduce the levels of fish C (2) I (0) C (1) I (0) 0 1 The water quality would deteriorate changing the environment completely and impact fishing C (4) I (3) C (3) I (0) C (1) I (1) 0 The area would be crowded with people and construction and I would prefer not to go there. C (3) I (1) C (2) I (2) C (1) I (1) 1 C (13) I (6) C (8) I (3) C (2) I (2) 3 Survey Results_Land Use and Environment

150 Question 39 Do you feel that if your concerns over the affect on the fish were realized, that this would be TOTAL Temporary situation (i.e. after constructions, things would return to normal) 3 Permanent situation (i.e. things would never be the same) 2 Temporary if certain steps were taken to ensure the environment of the fish was protected ensure that fish will be there permanently Question 40 Talking specifically about hunting in the area, please place an "I" for inland areas and "C" for coastal land areas in each box that you feel to be true. TOTAL Armshow River Jaynes Inlet Cantley Bay Not Applicable The area would not be accessible for hunting because of construction. C (4) I (3) C (3) I (4) C (1) I (2) 1 The area would not be accessible for hunting because the animal environment would change and reduce the levels of available animals to hunt. C (3) I (2) C (3) I (4) C (0) I (1) 1 The water quality would deteriorate changing the environment completely and impact hunting C (2) I (2) C (3) I (2) C (1) I (1) 1 The area would be crowded with people and construction and I would prefer not to go there. C (3) I (3) C (2) I (2) C (0) I (1) 1 C (12) I (10) C (11) I (12) C (2) I (5) 4 Question 41 Do you feel that if your concerns over the affect on the animals hunted were realized, that this would be TOTAL Temporary situation (i.e. after constructions, things would return to normal) 4 Permanent situation (i.e. things would never be the same) 1 Temporary if certain steps were taken to ensure the environment of the animals was protected. 4 9 Question 42 Select your level of concern about the following possible environmental impacts such as Not Concerned TOTAL Somewhat Concerned Extremely Concerned Air quality Climate change, including effects of climate change interacting cumulatively with the predicted environmental effects of the project and the project's contribution to climate change Uncertainty regarding the restoration of wetlands Biological diversity The cumulative environmental effects of existing and new development Disturbance to unique sites or special features (e.g. protected areas, environmentally significant areas, etc) Question 43 Are you a cabin or camp owner? If yes please identify your level of concern below. Not Concerned TOTAL Somewhat Concerned Extremely Concerned Flooding near my cabin or camp Water levels dropping in the area Transmission lines passing through my area The increase of vehicles near my cabin or camp The influx of people near my cabin may lead to theft or break-ins Other (please specify) Does not apply/not a cabin or camp owner: Survey Results_Land Use and Environment

151 FINAL THOUGHTS Question 44 Considering everything you've now heard,read, answered, do you feel that you prefer the development would proceed at one location to the other? Meeting 1 Public English Meeting 2 Cabin Owners Meeting 3 HTO Exec and Board Meeting 4 Gov't, Org, City Meeting 5 Elders Meeting 6 Public Inuktitut Meeting 7 Businesses Meeting 8 English Meeting 9 Kimmirut TOTALS Jayne's Inlet Armshow River Cantley Bay Question 45 - one thing you would hope to gain from the hydro development project what would it be? -stabilize power rates -lower fuel prices -cheaper power bill -more Inuit employment -be a part of construction with my business (Almiq Contracting Ltd) -I'm hoping to see this project go ahead real soon -keep the environment clean on land and sea -I like the plan of hydro electric dam -there could be some pressure during the building cycle ie housing, social concerns, but this could be mitigated by good social planning and education -due to increase in population & cost of doing business I think the larger of the 3, Cantley Bay, should be chosen. It will provide more megawatts as compared to other sites -less greenhouse gases released into the environment -I believe it would make life better in the north reducing the price burden on people -it would leave a footprint but that would be offset by a reduction in greenhouse gases -tradespeople/construction workers from south/outside territory will impact crime/drugs/alcohol -for the long term I would like to see hydro electricity but I am unsure what all the impacts long term would be -cheaper electricity -I believe at this time it is early in the game for me to decide I don't have enough info to make an informed answer -Cantley Bay provides the best power generation option, has the least impact on traditional & recreational areas and activities, is the shortest, less impacted route to put a powerline & road to -cheaper power rates -need more info/discussions from QEC and input from Inuit from Iqaluit Survey Results_Final Thoughts

152 Appendix 4 Sample Excerpt of Socio-Economic Monitoring Agreement (SEMA) Reference: Diavik Diamond Mines Ltd., 1999 For Qulliq Energy Corporation January 2008

153 DIAVIK DIAMONDS PROJECT SOCIO-ECONOMIC MONITORING AGREEMENT THIS AGREEMENT made this 2 nd day of October, 1999 BETWEEN: DIAVIK DIAMOND MINES INC. (DDMI) - and THE GOVERNMENT OF THE NORTHWEST TERRITORIES as Represented by the Minister of the Department of Resources, Wildlife and Economic Development (the GNWT) - and ABORIGINAL SIGNATORIES AND PARTIES DIAVIK DIAMONDS PROJECTSOCIO-ECONOMIC MONITORING AGREEMENT

154 TABLE OF CONTENTS PART I PREAMBLE... 1 Article 1.1 PURPOSE... 1 Article 1.2 PRINCIPLES... 2 Article 1.3 SIGNATORIES... 2 PART II ADVISORY BOARD...3 Article 2.1 DIAVIK PROJECT COMMUNITIES GROUP ADVISORY BOARD... 3 PART III DIRECT EMPLOYMENT BENEFITS Article 3.1 INTENT... 8 Article 3.2 EMPLOYMENT POLICIES AND PRACTICES... 8 Article 3.3 TRAINING... 8 Article 3.4 REPORTING... 8 PART IV DIRECT ECONOMIC BENEFITS AND ECONOMIC DIVERSIFICATION Article 4.1 INTENT Article 4.2 SECONDARY DIAMOND INDUSTRY Article 4.3 PROCUREMENT POLICIES AND PRACTICES Article 4.4 REPORTING PART V CULTURAL AND COMMUNITY WELL-BEING Article 5.1 INTENT Article 5.2 CULTURAL AND COMMUNITY WELL-BEING POLICIES AND PRACTICES PART VI MONITORING AND MITIGATION Article 6.1 INTENT Article 6.2 MONITORING PROGRAM Article 6.3 EMPLOYEE SURVEY Article 6.4 REPORTING Article 6.5 MITIGATION... 15

155 PART VII GENERAL PROVISIONS Article 7.1 ARBITRATION Article 7.2 ASSIGNMENTS Article 7.3 SEVERABILITY Article 7.4 APPLICABLE LAWS Article 7.5 ENTIRE AGREEMENT Article 7.6 NO AGENCY, PARTNERSHIP Article 7.7 ENURING CLAUSE Article 7.8 REPRESENTATION Article 7.9 FORCE MAJEURE AND TERMINATION Article 7.10 NOTICES Article 7.11 AMENDMENT Article 7.12 WITHDRAWAL Article 7.13 COMPREHENSIVE STUDY REPORT Article 7.14 CONDITION AND TERM Article 7.15 PROGRAM COMMITMENTS OF GNWT Article 7.16 PLACE OF BUSINESS Article 7.17 CONFIDENTIALITY Article 7.18 DEFINITIONS Article 7.19 EXTENDED MEANINGS Article 7.20 FURTHER ASSURANCES Article 7.21 SIGNING IN COUNTERPART Article 7.22 APPENDICES APPENDICES A. EMPLOYMENT COMMITMENTS B. TRAINING COMMITMENTS C. BUSINESS CAPACITY BUILDING COMMITMENTS D. CULTURAL AND COMMUNITY WELL-BEING E. GLOSSARY OF TERMS

156 PART I PREAMBLE WHEREAS: DDMI as manager of an unincorporated joint venture with Aber Diamond Mines Ltd., ( Aber ) proposes to establish a mine and related facilities to be located at the East Island in Lac de Gras, Northwest Territories for the commercial production of rough diamonds. DDMI is entering into this Agreement as manager of the joint venture. The Comprehensive Study Report (CSR) on environmental assessment issued by DIAND and other responsible authorities under the Canadian Environmental Assessment Act includes a requirement for a socio-economic monitoring agreement to provide a formal mechanism to ensure the mitigative measures and commitments of DDMI and those outlined in the CSR are appropriately implemented and monitored. DDMI and the GNWT acknowledge that the Aboriginal Authorities have aboriginal and treaty rights which are being defined, recognized and protected in a variety of forums. Nothing in this Agreement abrogates or derogates from participation or benefit agreements or from any aboriginal, treaty or other rights of Aboriginal peoples, including self-government or any fiduciary obligations of the Crown. The GNWT has committed to lead the development and co-ordination of the socio-economic monitoring agreement. NOW THEREFORE the Parties, in consideration of the terms and mutual covenants hereinafter contained, agree as follows: Article 1.1 PURPOSE The purpose of this Agreement is to: communities, governments and DDMI provide an effective ongoing working relationship between the Parties on the matters covered by this Agreement in a spirit of cooperation and with mutual respect for the goals and aspirations of each Party; provide a mechanism whereby effective communication, consultation and cooperation can take place between the Parties; provide for capacity-building and sustainable economic development, while minimizing negative socio-economic impacts from the Project to the extent reasonably practicable; verify the predicted socio-economic effects of the Project as summarized in the Comprehensive Study Report, ensure commitments are acted upon by all Parties and realized in the spirit they were presented, and allow alternate mitigative action where warranted;

157 meaningfully engage those people most affected by the Project - and their representative governments - in assessment, decision-making and management of socio-economic effects arising from this Project; and establish a Diavik Project Communities Group Advisory Board to review and monitor socio-economic impacts of the Project and to provide recommendations and advice to Article 1.2 PRINCIPLES The Parties acknowledge that this Agreement will be implemented in a manner consistent with the following principles: the social and economic development of Northwest Territories and West Kitikmeot Region can best be achieved when there is a shared vision, and shared action among all Parties; governments, industry, Aboriginal Authorities and communities must work together to enable people to maximize their employment potential and to contribute to the economic and social development of the area; economic diversification is a recognized goal within the NWT to achieve full economic and social potential; recommendations, decisions and actions that flow from this Agreement will be consistent with the beliefs, customs, knowledge and values of the Aboriginal people affected; the Project is expected to contribute to the social, economic and cultural well-being of people of the Northwest Territories and West Kitikmeot Region; and the Project is expected to be profitable and economically successful. Article 1.3 SIGNATORIES Aboriginal Authorities may exercise an option to be Signatories or Parties to this Agreement. For greater certainty, an Aboriginal Authority Signatory may exercise an option to be a Party to this Agreement.

158 Appendix 5 Proposed Site Location Maps Reference: Iqaluit Hydro-Electric Generation Site, Phase II Pre-Feasibility Report, For Qulliq Energy Corporation January 2008

159 Figure 1 City of Iqaluit Municipal Boundaries (Reference: City of Iqaluit General Plan, By-Law 571, 2001.

160 Figure 2 Project Location Map includes Armshow River, Jayne s Inlet and Cantley Bay Sites (disregard Anna Maria Port reference) Source: Phase II Pre-Feasibility Report, Ref. No. VA /01-2, Knight Piésold Consulting

161 Figure 3 Armshow River (Long Site, for reference only) Source: Phase II Pre-Feasibility Report, Ref. No. VA /01-2, Knight Piésold Consulting

162 Figure 4 Jayne s Inlet Site Map Source: Phase II Pre-Feasibility Report, Ref. No. VA /01-2, Knight Piésold Consulting

163 Figure 5 Cantley Bay Site Map Source: Phase II Pre-Feasibility Report, Ref. No. VA /01-2, Knight Piésold Consulting

164 Appendix 6 Overview of Hydroelectric Operations and Maintenance Reference: Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance: Electricity Industry Practices, 2001 For Qulliq Energy Corporation January 2008

165 2.O OVERVIEW OF FACILITY OPERATIONS AND MAINTENANCE This background section provides an overview of the hydroelectric operations, with a basic description of how facilities work and the process of operations planning. SPILLWAY GATES HEADPOND DAM SPILLWAY TRANSFORMER TAILRACE POWERHOUSE RIVER FIGURE 2.1 View of a Hydroelectric Generation Station and Associated Facilities 2.1 COMPONENTS OF A HYDROELECTRIC FACILITY Hydroelectricity is produced by an extensive and complex system designed to harness the kinetic energy of flowing water (see Figure 2.1). This energy is captured and controlled by dams and carried through pipelines (penstocks) to turbines. Water flowing through the turbines causes them to rotate, which in turn drives the generator. The generator then converts the mechanical energy into electric energy for transformation and delivery to consumers through a network of high voltage transmission lines and lower voltage distribution lines. The principal components and operations of a hydroelectric facility are described below. 2 2 Italicized items are defined in appendix B. Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance Page 11

166 Dam The foundation of a hydroelectric power facility is the dam: an earth-filled and/or concrete structure that retains the reservoir. Dams control the flow of water and increase the elevation to create head (the difference between upstream and downstream water levels) so that energy can be produced. They can be equipped with a variety of water release structures, including turbines for electricity generation, spillway gates to control flooding, and other gates and ports that can be used for non-power-related purposes. Dams can serve any combination of storage, diversion, or power generation needs. Often, they are described as being either storage or run-of-river, although the distinction between the two is not absolute. Storage dams are designed to store large volumes of water in reservoirs until required for electricity generation, with water levels typically fluctuating as a result. While most dams are built in the main river channels, some are utilised as side dams to cover low points in topography. In contrast, run-of-river dams, some of which are known as head pond dams, do not store significant amounts of water in a reservoir, but rather let the water flow immediately past the dam. In this case, the ability to produce power depends on the head, surrounding topography, installed generating capacity, and the volume of water flow. Powerhouse and Plant The powerhouse contains the turbines, generators, and related equipment that are used to convert the energy stored in water into electricity. Powerhouses can be standalone buildings connected to the reservoir through an intake and penstock, or they can be an integral part of the dam holding back the reservoir. (See Figure 2.2) The difference between the forebay water level (immediately upstream of a generating station) and the tailrace water level (immediately downstream of the station) defines the hydraulic head. Typically, hydroelectric power plants are designed for ranges of head and water discharge volume. The powerhouse in a run-of-river operation can often be much smaller, since the unit has been sized to operate with the available base flow in the river. On the other hand, a plant that has access to significant storage will tend to be larger, because it has been sized to pass more water during shorter time periods in order to meet system energy demand. The type of turbine used for generation is also dependent on the size of facility (i.e., head) and operating mode. Currently, Francis and Kaplan turbines are the two predominant types found in Canadian hydroelectric facilities. Some conventional hydroelectric power plants, such as run-of-river facilities, operate continuously to provide base load energy to the system (base load plants). Peaking plants run only for limited periods of time when there is additional demand for energy (peak load). Pumped storage facilities, which are very rare in Canada, pump water back up into the reservoir during off-peak periods for later peaking use. Inherently, the dam, powerhouse and plant tend to be large, fixed structures, designed to withstand the very significant forces associated with stored or moving water. This means that it is inherently difficult to make retroactive modifications to the main facilities for any Page 12 Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance

167 reason. However, modifications may be periodically required at some facilities, and this may, under some circumstances, provide opportunities to address environmental concerns. Hoist Headwater Elevation Penstock POWERHOUSE Transformer Crane Headworks Turbine Generator Tailwater Elevation Draft Tube FIGURE 2.2 Cross-Section of a Typical Hydroelectric Generating Facility Reservoirs The portion of a hydroelectric facility that is farthest upstream is the reservoir: the body of water behind the dam. Storage reservoirs are similar to rechargeable batteries, storing potential energy in the form of water that can be replenished by runoff water from rain and melted snow. Inflows, evaporation, and the dam operations therefore control the water level in a reservoir. Climate, topography, and season influence the rate at which reservoirs fill. In general, reservoirs in the west fill during the spring and summer, while those in the east do so in the spring and fall. Most are drawn down during the winter when the demand for electricity increases. The rate and extent to which this filling and drawing down of the reservoir occurs varies across the country. Storage refers to the total volume of water upstream of a generating station or dam at any particular point in time. Storage capacity is the amount of water contained between the reservoir s maximum and minimum allowable levels, while live storage is the amount available for power generation or other purposes. In most instances, live storage is less than the capacity level due to physical or regulatory constraints. Reservoir storage volumes and ranges in forebay elevation are defined by the topography of the site. Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance Page 13

168 In addition to their power production uses, reservoirs potentially provide a number of other benefits, including recreation, commercial transportation, commercial fishing, and property development. For example, there are agreements in place governing the management of water elevations in a number of headwater reservoirs in New Brunswick. These agreements were established with the intent of maintaining and protecting the recreational fisheries potential in those lakes. Diversion A diversion is a partial or total redirection of a water flow from one river or watershed into another in order to increase flow, head, and/or hydroelectric power production. Diversions are designed and operated to provide optimal flows to the intake canal or receiving watershed, or minimum flows to the river downstream of the diversion point. During a flood, excess flow may be returned to the river downstream of the diversion point. Downstream Flows Aside from head, a key consideration for hydroelectric generating capability is the flow of the river below the dam. The volume of this downstream flow is determined by the amount of water passing through the turbine(s) or other release facilities. Most dams change the natural flow regime of the river. Although the same amount of water enters the regulated river (after dam construction) as occurred in the unregulated (pre-dam) system, the operation of the dam can affect when, where, and how quickly water is released downstream. At some dams, all of the water is returned to the river, but at a different time and rate than before the dam was built. At run-of-river operations, water is discharged or released at essentially the same volume and time as it enters upstream. Diversion facilities, on the other hand, may alter the downstream flow by diverting water from one river system to another to increase flow for power generation. When heavy rains fall for a long time and/or during periods of high snowmelt, reservoirs begin to fill up as more water collects than is released. During these periods, the excess water may be released past the dam through a bypass flow (the spillway). Cascading Systems In a cascading system, hydroelectric facilities are located sequentially along the same watercourse, where the outflow from one facility flows directly into the reservoir of the next (see example in Figure 2.3). In general terms, a cascading hydroelectric system is developed to take advantage of the natural slope of the riverbed (i.e., elevation drop) along the river course. The size of storage and magnitude of flows determine how much the water levels may fluctuate. Page 14 Considering Fish and Fish Habitat in Existing Hydroelectric Operations and Maintenance

169 Appendix 7 Pending Consultation Meetings With Qikiqtani Inuit Association, Nunavut Tunngavik Incorporated and the Department of Fisheries and Oceans For Qulliq Energy Corporation January 2008

170 January 22, 2008 Joe Kunuk, CEO Nunavut Tunngavik Incorporated P.O. Box 638 Iqaluit, NU X0A 0H0 Dear Joe We wish to thank Virginia Lloyd for attending the consultation meeting last October on the socio-economic impact of the Iqaluit hydro electric development project proposed by the Qulliq Energy Corporation. We greatly appreciate the interest of Nunavut Tunngavik Incorporated in the project. We are in the final stages of writing the socio-economic impact report at the moment. If you wish to make comments on the project, please contact us at your convenience and we will organize a follow up meeting. We look forward to hearing from you in the near future. Yours truly, Natsiq Kango, CEO Enokseot Holdings Ltd. cc Natan Obed, director, Social and Cultural Development Department Virginia Lloyd, assistant director, Social and Cultural Development Department

171 January 22, 2008 Terry Audla, Executive Director Qikiqtani Inuit Association P.O. Box 1340 Iqaluit, NU X0A 0H0 Dear Terry We wish to thank John Amagoalik and members of his staff, Mathew Akavak and Salomonie Shoo for attending the consultation meeting that was held in October on the socio-economic impact of the Iqaluit hydro electric development project proposed by the Qulliq Energy Corporation. We appreciate their response to the questionnaire that we provided on the socio-economic impacts of the hydro development and will pass along their comments to the Qulliq Energy Corporation. In addition, we will inform Qulliq Energy Corporation that the Qikiqtani Inuit Association wants to continue to be informed about the progress of the project and wants to meet sometime in the near future when more information and details on the hydro development are available. Yours truly, Natsiq Kango, CEO Enokseot Holdings Ltd. cc John Amagoalik, Director of Lands and Resources Mathew Akavak Salomonie Shoo

172 Appendix 8 Transcripts of Selected Community Meetings For Qulliq Energy Corporation January 2008

173 Iqaluit Hydro Electric Development Project Enokseot Holdings Ltd, Transcript of Meeting with Cabin Owners October 22, 2007 Roman Catholic Hall Attendees: Ben Kovic, Johnny Kolola, Beatrice Ikkidluak, Lucassie Ikkidluak, Seeglook Akeeagok, Mimi Akeeagok, Elisapee Davidee, Rhoda Ungalak, Eliyah Pudloo, Annie Pudloo, Oleepeeka Gordon, Mary Wilman, Jonah Kelly, Rosie Ellsworth, Mosesie Korgak, Annie Nauyuk, Eliyah Nauyuk, Sammy Josephee, Joe Tikivik, Mr. Panipak, Ed Zeebeedee, Leah Inutiq, Sheila Kolola, Moonie Kolola Ben Kovic: I would like to know how the flow of the river would be, will it over flow and the mouth of the river would not form into ice or during the spring will it melt earlier than usual. I really feel that you should inform the cabin owners, hunters and people that travel to those areas to make sure the ice is not melting earlier than usual. If this is going to have an impact on people then someone should be able to answer this. Like you mentioned earlier that when the ship starts bringing stuff there, will the animals run away and never come back? If this has not been researched then no one should decide of the location until there is an answer to these kind of questions. The only thing I am concerned about is in the spring time or winter time is if the dam over flowed. Jonah Kelly: Will the lake at Jaynes inlet expand or over flow? Have they tested how the salt water is beside testing the lake? I know that it is pretty shallow around Jaynes Inlet. Joe Tikivik: Cantley Bay is quite busy with people fishing during spring. The ocean there is quite deep too so it would be no problem bring ships there. Ed Zeebeedee: Are they planning to build a right way road with a transmission line? The only comment I have is with the transmission lines now, we are going to have more and more people where people where people are going to follow the transmission line because now people don t go in this area unless they know this area. And the weather changes very fast in those valleys so fast. i

174 Iqaluit Hydro Electric Development Project Enokseot Holdings Ltd. Transcript of Meeting with NTI, QIA, Nunavut Government Anglican Parish Hall October 24, 2007 Attendees: Dushyenth Ganesan, Virginia Lloyd, Larry Gordon, Nelson Pisco, Joanasie Akumalik, Chris Nichols, John Hawkins, Lazarus Akeeagok, Cindy Parker, Hugh Lloyd, Sarah Maniapik, Stephen Benthey, Salamonie Shoo, Mathew Akavak, Glenn Williams, George Hicks, Zsolt Munkacsy, Jason Carpenter, Joshua Kango, Sammy Josephee. Wiz Mohammed, Natsiq Kango, John Laird, Naomi Alainga. Nelson Pisco: What s the distance from the City to the sites? Attendee: It was information given of estimated in terms of mega watts production? Glenn Williams: The thing that would help me is the distance part would be if you could give me the transmission line length for each of the sites. If it could be shown on the maps, the estimated length of the transmission line. The other thing is in regards to especially the Armshow River, that is a very significant area to the people in the summer time, my question is in regards to that, whether or not there is any consideration for doing harvest studies at this time to determine the current utilization. The reason I m asking for this is because Article 6 of the LCA is there s an issue in wildlife compensation and in the objective if a project is put in a place where the is a loss of harvesting opportunity, there is going to have to be someway of assessing what that compensation is, I guess my question is if there s consideration of collection of harvest data presently in regards to species and wildlife harvested is being considered. I m just wondering if this construction or project will be subject to Article 24 of the LCA. Only the Federal and Territorial Government has been on conditions of the NNI policy of the Inuit employment etc. and it is anticipated that the Land Claim Agreement objectives would apply to this project but I just want to confirm that this would be something that would subject to Article 23 & 24 of the Land Claim Agreement. Chris Nichols: What you stated was that we are not going to choose one site now but all the sites are really in play here for the development. Is QEC going to have to do an IIDA? John Hawkins: There is quite a bit of infrastructure involved in getting onto the sites on the roads, what is the residual value? Chris Nichols: Will this be an ongoing consultation with my department (CGS) because we have other transportation needs around community for partnership. John Amagoalik: Do you have any cost estimates yet? Larry Gordon: I there a chance to remove ourselves 100% from diesel generation? Dushyenth Ganesan: I am interested in more detail information in terms of business opportunities. We would like to know if you ve done any assessment on what the current local capacity is in terms of businesses of being able to support this project and will there be detailed ii

175 information available on types of specific business inputs required and how many people will be working on this project? John Hawkins: One thing that should be considered is if you are getting inquires from outside the Territory then try and look at how you can inquire them to into the territory. You talked about corporate structures, is there details available on options on the possible sites. So there is possibility that there could be ownership? Chris Nichols: Given that all three of these sites are in play, intentionally one project, are you planning to put it through nerve as one project, listing is as phases. George Hickes: I want to go over some of the employment estimates you are having that obviously is going to create employment. What kind of training programs and community training program are you anticipated. What type of preparation or to the residents here were you talking involved in infrastructure and stability, you are going to need people from here? Hugh Lloyd: You mentioned earlier that there would be some archeological research as part of the condition studies. Would that be focused on the entirely on the sites and will it also affect the transmission lines? Nelson Pisco: For businesses and private home owners, if and when this went ahead will there be a cost associated for retro facilities, if they decide to convert from furnaces electrical heating and is there an organization going to promote the move of the subsidized cost? Jason Carpenter: You gave us an estimate, 100 million to 800 million giving us a life from five to 80, and you gave us mega watts coming from those sites. Have you figured out how much it would cost us per Kilo Watt Hour. Would we be saving significant compared to what we are paying right now? Is it likely to succeed like other dam sites in northern regions? Glenn Williams: I am interested in what process you guys went through to go the way as hydro? How did you rule out other alternative? And as examples: Nuclear? What was the process to determine that the hydro was the way you were going to go? Attendee: Do you have the approximate kilometer rates of the anticipated for construction for each of the sites at this stage? Also the plan of the construction, would the transmission lines be laid on the ground or would they be tunneled? iii

176 Iqaluit Hydro Electric Development Project Enokseot Holdings Ltd. Transcript of Meeting with Businesses Anglican Parish Hall November 8, 2007 Attendees: Todd Wilson, Hagar Sudlovenick, Eva Onalik, Johnny Mikijuk, Natsiq Kango, John Laird, Wiz Mohammad, David Veevee. Todd Wilson: They can get you to do it the way those considerations against the impact and what s happening in right now in town. We had a secretary in June and sat down with two small business owners and two other owners. They all indicated the high cost of doing business in Iqaluit is really a drain on businesses right now. Here we are paying so much of your income to keep your warehouse heated and to pay for heating and things like that. They all indicated that there is a major strain on businesses. So I think something like this could reduce the power cost in the future. It looks like it s going to be expensive and it s going to cause problems. Is there going to be environmental studies on all three sites? Johnny Mikijuk: I have a question regarding Jaynes Inlet, how much mega watts would it be? I think it would be too small to generate there, how can you determine that? Eva Onalik: Do you have the forecast as to funds, let s say what the differences would be? Hagar Sudlovenick: When you were doing the study, do you also look at it with energy? iv

177 Appendix 9 Enokseot Holdings Ltd. Profile For Qulliq Energy Corporation January 2008

178 Enokseot Holdings Company Profile Founded in 1974 Enokseot Holdings Ltd., has remained 100% Inuit owned since it was founded by Joshua Kango and Natsiq Alainga-Kango of Arctic Bay. The principals believe that there will be substantial contracts available due to Article 24 of the Land Claim Agreement, that this agreement will ensure beneficiaries to benefit by giving contracts to Inuit owned companies. Today, the owners are exploring other businesses in delivering consulting, feasibility studies and training, learned and experienced from years business experiences. Over 30 years of experience with the people and communities of Nunavut, across so many levels of business and government has allowed the owners to move into new areas of business in delivering consulting, feasibility studies, training and more. Enokseot Holdings Ltd., demonstrates the leadership and skills that prove what a 100% Inuit company can be, a proud example of a self-reliant, successful company working to improve the capacity of all Nunavummiut. SEIA Lead Team: Team Leader: Writer/Editor: Reasearcher: Natsiq Alainga Kango Brian Horvath John Laird SEIA Support Team: Jane Truelove, Naomi Kango, Julie Truelove

179 Appendix 10 Employment Summary of GN Public Service Review IEP Capacity to March 31, 2007 For Qulliq Energy Corporation January 2008

180 Employment Summary of GN Public Service Review Category All Departments, Agencies, Boards & Corporations Total Positions Capacity (%) Jun-99 Mar-06 Dec-06 Mar-07 Jun-99 Mar-06 Dec-06 Mar-07 Executive % 95% 95% 95% Senior Management % 91% 91% 88% Middle Management % 85% 84% 82% Professional % 85% 80% 80% Paraprofessional % 80% 77% 79% Administrative Support % 84% 81% 79% Total All Employment Categories % 84% 80% 80% Departments Totals Community Government & Transportation % Community & Government Services % 78% 76% Culture, Language, Elders & Youth % 74% 74% 82% Economic Development & Transportation % 78% 77% Education % 91% 90% 91% Environment % 85% 84% Executive & Intergovernmental Affairs % 88% 66% 75% Finance % 77% 73% 71% Health & Social Services % 77% 67% 66% Human Resources % 84% 84% 85% Justice % 83% 85% 84% Office of the Legislative Assembly % 83% 84% 84% Public Works & Services % Sustainable Development % Total GN Departments % 84% 79% 79% Agencies, Boards & Corporations Totals Nunavut Housing Corporation CGT CGT 84% 85% 82% Divisional Education Councils na ED ED ED na ED ED ED Health Boards na HSS HSS HSS na HSS HSS HSS Nunavut Arctic College na na 81% 81% 85% Qulliq Energy Corporation % 94% 95% Total Agencies, Boards & Corporations TOTAL % 84% 88% 88% % 84% 80% 80% IEP Capacity to March 31,

181 Qulliq Energy Corporation Employment Summary, by Category Total Positions Total Positions Beneficiaries Vacancies Filled % Capacity Hired % IEP Employment Summary, by Community Executive % 1 33% Senior Management % 0 0% Middle Management % 1 6% Professional % 14 32% Paraprofessional % 25 68% Administrative Support % 41 95% Employment Summary, By Headquarters & Region Total Department % 82 56% Arctic Bay % 1 50% Qikiqtarjuaq % 2 100% Cape Dorset % 2 100% Clyde River % 2 100% Grise Fiord % 2 100% Hall Beach % 2 100% Igloolik % 2 100% Iqaluit % 19 33% Kimmirut % 1 50% Nanisivik Pangnirtung % 2 100% Pond Inlet % 2 100% Resolute Bay % 2 100% Sanikiluaq % 1 50% Arviat % 2 100% Baker Lake % 16 59% Chesterfield Inlet % 2 100% Coral Harbour % 1 50% Rankin Inlet % 6 55% Repulse Bay % 2 100% Whale Cove % 2 100% Bathurst Inlet Umingmaktok Cambridge Bay % 3 30% Gjoa Haven % 2 100% Kugluktuk % 2 100% Kugaaruk % 2 100% Taloyoak % 2 100% Total Community % 82 56% Headquarters % 16 62% Region % 66 55% TOTAL % 82 56% IEP Capacity to March 31,

182 Appendix 11 Inuit Accord on Human Resources Development 5 Year Renewal Signed November 26, 2007 For Qulliq Energy Corporation January 2008

183 Inuit Accord on Human Resources Development Between Her Majesty the Queen in Right of Canada (herein referred to as Canada ), as represented by the Minister of Human Resources and Skills Development (herein referred to as the Minister ) And Inuit Tapiriit Kanatami (hereinafter referred to as the ITK ) on behalf of the Nunatsiavut Government, the Qikiqtani Inuit Association, the Kivalliq Inuit Association, the Kitikmeot Inuit Association and the Inuvialuit Regional Corporation. WHEREAS in 1999 Canada introduced a five year strategy called the Aboriginal Human Resources Development Strategy (AHRDS) to improve the employment opportunities for the Aboriginal peoples of Canada; WHEREAS the Inuit are an Aboriginal people of Canada as described in section 35 of the Constitution Act, AND WHEREAS under the AHRDS, Canada and the ITK entered into an Accord on Human Resource Development effective April 1, 1999 (hereinafter referred to as the 1999 Inuit Accord ); AND WHEREAS under the 1999 Inuit Accord, Canada and the ITK agreed on certain objectives regarding Inuit human resources development in Canada; AND WHEREAS the 1999 Inuit Accord also enabled the negotiation of funding agreements between Canada and Inuit regional authorities which provided those authorities with support to design and deliver human resource development programming for the Inuit they represented; AND WHEREAS Canada has renewed the AHRDS for a further five years; AND WHEREAS the 1999 Inuit Accord has expired and Canada and the ITK wish renew their relationship under the renewed AHRDS and wish to enter into a new Inuit Accord on Human Resources Development; AND WHEREAS Canada and the ITK agree that this new Accord does not create any legal obligations which are binding on the parties. NOW THEREFORE, Canada and ITK on behalf of the Nunatsiavut Government, the Qikiqtani Inuit Association, the Kivalliq Inuit Association, the Kitikmeot Inuit Association and the Inuvialuit Regional Corporation agree as follows: 1.0 Purpose and Interpretation 1.1 Definitions In this Accord, except where otherwise expressly provided in the Accord or indicated by the context: a) Accord means this Accord, including its recitals, and any subsequent amendment or extension;

184 b) HRSDC means the Department of Human Resources and Skills Development, styled Department of Human Resources and Social Development; c) Inuit means all those members of the Aboriginal people of a region of Canada commonly known as Inuit, as defined in each region by the Regional Inuit Association representing the region, but without regard to the residency of such persons anywhere in a province or territory of Canada; d) Inuit Human Resource Development Agreement and IHRDA means an agreement between Canada and a Regional Inuit Association entered into pursuant to the Aboriginal Human Resources Development Strategy to provide financial assistance to support the costs of human resources development programs provided by the Regional Inuit Associations; e) Region and Regions means the Labrador Region, Qikiqtani Region, Kivalliq Region, Kitikmeot Region and Inuvialuit Region, as such regions are defined by their respective Regional Inuit Associations, including, without limitation, where defined pursuant to Land Claims Agreements; f) Regional Inuit Association and RIAs mean Nunatsiavut Government, Qikiqtani Inuit Association, Kivalliq Inuit Association, Kitikmeot Inuit Association and Inuvialuit Regional Corporation, or any successor, person, or entity representing the interests of all Inuit within their respective regions as described by RIAs; g) 1999 Inuit Accord means the Inuit Accord on Human Resource Development agreed to by the Minister of HRDC, the Secretary of State for Youth and Training, the President of the Inuit Tapirisat of Canada and authorized representatives of Regional Inuit Associations dated February 11, Purpose The purpose of this Accord is to renew the relationship established between Canada and the ITK under the 1999 Inuit Accord by (a) confirming the objectives of Canada and the ITK regarding Inuit human resources development in Canada; (b) confirming the commitment of Canada and the ITK and the Regional Inuit Associations to work together towards the successful implementation of the new IHRDAs entered into between Canada and the RIAs and which end March 31, 2009; and (c) confirming Canada s commitment to continue to support the program and policy coordination role of the ITK to better serve Inuit on human resource development issues. 2.0 Objectives Canada and the ITK agree to the following objectives regarding Inuit human resources development in Canada: to work in partnership in finding ways to improve the employment and employability skills of Inuit; to work in partnership in a relationship based on mutual trust, respect and openness; and

185 to improve programming and ensure access for urban Inuit, Inuit youth, children, women and persons with disabilities 3.0 Commitment to Work Together 3.1 IHRDAs, ITK, HRSDC regional and national offices will strive to improve communication, to ensure that pertinent, reliable and consistent information is provided in a timely manner. 3.2 Canada and the ITK agree to develop a joint work plan to address specific issues over the course of the Accord, such as service delivery for Inuit living in urban areas, accountability requirements in Inuit Human Resources Development Agreements, and improving communication. 3.3 Canada and the ITK agree that the ITK will develop an Inuit-specific policy input on urban service delivery for consideration in the national policy review of the urban service delivery component of the Aboriginal Human Resources Development Strategy. This will have no effect on the Inuit Human Resources Development Agreements northern allocations. 3.4 Canada and the ITK agree that the formative and summative evaluation of the IHRDAs shall be conducted in partnership and cooperation between the parties. The joint evaluation advisory committee will ensure the evaluation respects the principles of objectivity, balance, transparency, validity of methods, analytical rigour and reporting quality. 5.0 Review of Accord 5.1 The Minister and the ITK President agree to meet at least once per fiscal year (April 1 - March 31), to review matters related to this Accord at a time and place convenient to them. 5.2 The signatories or their designated representatives may meet as required to review matters outlined in this Accord or matters related to the IHRDAs at a time and place convenient to all parties. 6.0 Period of Accord This Accord shall be effective when it is signed by both Canada and the ITK and shall terminate March 31, Signed on Behalf of Canada At Ottawa, Ontario This 26th day of November, 2007 Signed on Behalf of Inuit Tapiriit Kanatami At Ottawa, Ontario This 26th day of November, 2007 Minister of Human Resources and Social Development President of Inuit Tapiriit Kanatami