Canada Offers Indigenous Groups 15% Equity Stake in Trans Mountain Pipeline
The Canadian federal government has proposed a collective 15% ownership stake in the Trans Mountain pipeline to Indigenous groups, facilitated by low-cost loans. While officials frame this as economic reconciliation, some industry leaders criticize the offer's size and compensation terms.
The Canadian federal government has offered Indigenous groups a collective 15 per cent ownership stake in the Trans Mountain pipeline. This equity investment would be equally distributed among participating groups through a low-cost loan provided by the government.
The proposal follows consultations and discussions with 129 First Nations. Under the terms of the offer, each Indigenous group that invests in Trans Mountain is set to receive $2.5 million to compensate for potential lost revenue from earlier ownership opportunities. Additionally, Ottawa will provide eligible groups with up to $100,000 for participation costs and cover independent advisers for due diligence.
Details of the offer are scheduled to be shared during in-person meetings planned for late October in Vancouver, Victoria, Kamloops, and Edmonton. The initiative aims to advance the plan to give First Nations equity in federally owned infrastructure, providing governance rights and a share of cash generated by the pipeline to participating groups via a special-purpose vehicle.
While government officials describe the 15% stake and $2.5 million compensation as steps toward economic reconciliation, the proposal has faced criticism from some Indigenous industry experts. Stephen Buffalo, CEO of the Indian Resource Council, stated that a 15 per cent stake is not good enough and suggested that 51 per cent would be more respectable. Dale Swampy, CEO of the National Coalition of Chiefs, questioned why the $2.5-million offer was small given the pipeline's cost of tens of billions of dollars.