This text is part of the special section Indigenous Development
The government and some companies participate in co-owned resource exploitation and processing partnerships with indigenous communities. This avenue constitutes one of the facets of economic reconciliation, which aims to restore fair and equitable relations.
Last April, Kahsennenhawe Sky-Deer, Grand Chief of the Mohawk Council of Kahnawake, Michael Sabia, CEO of Hydro-Québec, and Ian Lafrenière, Minister responsible for Relations with First Nations and Inuit, met on the Mohawk territory of Kahnawake. They signed agreements there which will make the Mohawk Council of Kahnawake and Hydro-Québec co-owners of the Hertel-New York line once it is put into service in 2026.
“This partnership represents an interesting example of economic reconciliation, although its concrete benefits will only be felt over the coming years,” says Alexandre Bacon, founding president and principal advisor of the Ashukan Institute.
An economy to rebuild
Economic reconciliation relates to the possibility for Indigenous communities to regain power over the development of their territory and to benefit from it as well as their inclusion in all aspects of Quebec’s economic activity. The arrival of European settlers destroyed the economic structures that these communities had built. Subsequent policies and laws, particularly the Indian Act, contributed to excluding them from entire sectors of the national economy.
Until now, economic reconciliation has often involved paying payments, or even reparations, to indigenous communities for projects established on their lands. Last May, Hydro-Québec signed agreements for the payment of several tens of millions of dollars with the Innu Council of Unamen Shipu and that of the Innu of Pakua Shipi, in order to resolve disputes regarding the Lac power station. -Robertson, located on the North Shore.
The granting of contracts to indigenous companies so that they participate in the realization of projects and the entry of communities as shareholders and co-owners represent other figures of economic reconciliation.
The co-ownership approach is dear to the heart of Alexandre Bacon. “It’s an opportunity for communities to be stakeholders in the way the territory is developed and to generate income,” he explains. The development of First Nations requires financial autonomy that current federal transfers do not allow them to acquire. »
His organization offers training, research and strategic advice services on indigenous realities in order to support organizations that wish to do so in their relations with these peoples. In Algonquian languages, the word “ ashukan » also refers to a bridge between two banks.
Eyes on energy
Indigenous communities are therefore looking for long-term investment opportunities. Several of them have considered the energy sector as an interesting vein for many years. In Lac-Saint-Jean, the elected officials of Pekuakamiulnuatsh Takuhikan (which at that time was still called the Conseil des Montagnais du Lac-Saint-Jean) founded Hydro-Ilnu to respond to calls for tenders from Hydro-Québec in the 1990s. Their goal was to generate their own income to overcome dependence on government subsidies.
They quickly encountered the obstacle of financing. The cost of carrying out the first project, the Minashtuk mini hydroelectric power station, on the Mistassibi River, was $25 million. An amount that they could have tried to obtain through high-interest loans. The community instead formed a partnership with Hydro-Québec for the construction and commissioning of the installation, which took place in 2000. Since then, partnerships have been concluded with MRCs in the region for other mini power plants.
“It was a bit like the beginnings of an approach destined to become more and more important,” says the president of the Ashukan Institute. Indigenous communities are not only interested in hydroelectricity. For several years, they have been active in wind power. The Innu are also developing the Apuiat wind farm, in partnership with Boralex, a 200 megawatt project located partly on the traditional territory of the Uashat mak Mani-Utenam First Nation.
Obstacles to overcome
The avenue of co-ownership partnerships is, however, strewn with pitfalls. “Access to financing constitutes one of the main obstacles to the participation of indigenous communities in large-scale energy projects since they do not have a lot of capital,” explains Alexandre Bacon.
The First Nations Finance Authority can offer long-term loans at attractive rates to Indigenous communities that have obtained certification from the First Nations Financial Management Board. This demonstrates that the borrowing First Nation has adopted sound governance and financial practices.
In 2024, the federal budget announced the launch of the Indigenous Loan Guarantee Program, which aims to promote access to capital and eliminate barriers to their participation in projects related to natural resources and energy . Alberta, British Columbia, Saskatchewan and Ontario also have this type of program, which Alexandre Bacon would like to see in Quebec.
The Canada Infrastructure Bank’s Indigenous Participation Initiative also helps First Nations, Métis and Inuit communities purchase interests in infrastructure projects located on their traditional territories.
The Indian Act, for its part, presents major structural obstacles, in particular the impossibility of seizing land or individual businesses in indigenous territory. “At first glance, it seems like an advantage, but in reality, it greatly limits what the First Nations can offer as guarantee in exchange for a loan,” explains Alexandre Bacon.
Many efforts therefore remain to be made, particularly at the legislative level, to create favorable conditions for equitable partnerships with indigenous communities. “The development of the indigenous economy is not to the detriment of the rest of the population,” assures the president of the Ashukan Institute. On the contrary, it generates significant benefits throughout the Quebec and Canadian economies. »
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