Reconciliation in action with Alberta’s Indigenous Opportunities Corporation

Crown corporations’ milestones lead to an expanded mandate featured at the upcoming Indigenous Partnerships Success Showcase in Vancouver.

Alberta Indigenous Opportunities Corporation Board Chair, Stephen Buffalo.

About a 90-minute drive east of the Rockies near Edson, Alberta’s road to transition from coal-fired power generation runs parallel to a meaningful pathway for reconciliation with First Nations.

Here, six First Nations are ensuring Alberta’s growing demand for clean electricity supplies also translates into a new economic reality for Indigenous communities by having an equity stake in the $1.5 billion Cascade Power Plant Project.

Backed by a $93 million loan guarantee from Alberta Indigenous Opportunities Corporation (AIOC), the Cascade Power Plant Project is to be a 900-megawatt combined-cycle natural gas-fired power generation, which will play a role in transitioning the province away from coal-fired power.

“This deal is transformational for the First Nations involved and creates the national blueprint for Indigenous communities to acquire ownership in major energy and infrastructure projects,” said Chief Tony Alexis of the Alexis Nakota Sioux Nation.

“Financial security through AIOC for these participating First Nations in the Cascade Power Project will contribute to our energy grid, get people in Alberta back to work and put First Nations on a path to prosperity,” said Alberta Premier Jason Kenney.

The Cascade Power Project is but one project backed by AIOC, which is committed to advancing meaningful reconciliation through strategic, shared value partnerships with Indigenous communities.

Others include a $40 Million loan guarantee for eight Indigenous communities in the Wood Buffalo Region to finance an ownership interest in the Northern Courier Pipeline System (NCP System) and a $25 million loan guarantee to the Frog Lake First Nation for its investment in the Strathcona Resources' Lindbergh Cogeneration Facility.

“The work being undertaken contributes to reconciliation, which involves Indigenous communities accessing greater economic participation and investment opportunities,” said Stephen Buffalo, Board Chair of AIOC.

Established as an Alberta crown corporation in 2019, AIOC has been delegated the authority to provide up to $1 billion in loan guarantees to reduce the cost of capital for Indigenous groups and support their ability to raise capital.

“These loan guarantees help Indigenous groups participate in large equity share projects without having to leverage their traditional lands for financing,” said Buffalo.

In addition, AIOC also provides capacity grants to assist Indigenous groups access third-party advice and expertise for assessing and developing a potential project. It has three million dollars per year to assist Indigenous groups with independent third-party legal, technical, and economic support. These capacity grants do not need to be repaid.

The success of AIOC has led to an expansion of its mandate and generated interest from other provinces to establish similar organizations to provide Indigenous equity share partnerships with corporate Canada.

Last month, the Government of Alberta expanded AIOC’s mandate from natural resource projects to include and create additional opportunities for Indigenous investment in major agriculture, telecommunications and transportation projects and related infrastructure.

Like under the original mandate, the new eligible sectors require a minimum of $20 million of Indigenous investment to receive AIOC backing, with a maximum loan guarantee of $250 million per investment.

“At AIOC, our over-arching goal is to create a more equitable economy for all, and the expansion of our mandate broadens the opportunities available to our Indigenous community partners to better accomplish economic prosperity for their communities,” said Buffalo.

“By expanding opportunities beyond the natural resource sector, we are now able to consider a myriad of additional proposals. The expanded mandate further reinforces the stability and strength of the organization and commitment we have to supporting the health and well-being of our communities through directly contributing to Alberta’s economy,” he said.

AIOC will be bringing its message of thinking outside the box regarding Indigenous communities getting involved in large equity share projects to the upcoming 2022 edition of the Indigenous Partnerships Success Showcase (IPSS), held in Vancouver and online this May.

The two-day IPSS event with central themes of renewal, connection and commitment seeks to highlight how leading-edge relationships between Indigenous business and corporate Canada are making reconciliation a reality for the whole nation.

“Canada's Indigenous economy is worth $30 billion, and it is expected to more than triple in the coming years, hitting $100 billion by 2025,” said Stewart Muir, who founded the Indigenous Partnerships Success Showcase

“Much of this success comes through partnerships like those developed and backed by AIOC,” he said.

Find out more about the Indigenous Partnership Success Showcase, coming May 26 and 27, 2022, in person in Vancouver and online at www.Indigenoussucess.ca.