Feasibility study was done by Ontario Power Generation on their own. A copy will be required by INAC. There is 70% debt financing by OPG and 30% debt financing in the form of equity by First Nations which represents about $4 million. It was determined that First Nations are exempt from PST and GST in the project as a ruling was made to exempt the GST for off-reserve First Nations. OPG is committed on going forward on the project. A MOU is not necessary by the First Nations as they are already covered by past settlement agreements. Two First Nations are to join development general partnership to buy all material FOB Pays Platt and ship to next job site 30 kilometres from dam site. Is Government agreeable that we are exempt? Make sure CRA and Minister of Finance is on board. 60% of the project is material. KPMG did the Manitoba project and the government lost their case on the tax exemption so a ruling is already made. Creation of a general partnership would have to be made. Met with elders during March 2008. The cost of hydro would be $87.50 per megawatt hour. Ontario Power Authority (OPA) would be selling power to Ontario Power Generation (OPG).
Terms of reference has not been done yet. By December 2009 OPG will have completed the design stage at $1.2 million cost. By December 2009 First Nations to have 12.8% funding ready. new Band Council Resolutions required soon as possible. Financial commitment from both is needed.
In general, the project will be producing 7.4 megawatts power about year 2011/12 operating at 60 – 61% efficiency. The low rating is because the dam does not operate during winter months due to free up. Nevertheless, the project has a cost figure and tabled accordingly to achieve the results. Each First Nation will receive 12.5%, meaning 25% to both First Nations. dollars will be calculated so that the First Nations equity is being paid off over an extended period of years, but the First Nations will be receiving a n adjusted cash flow contribution after the dam starts operating during years 2010/11. In time, after a number of years, the equity will be paid off and each First Nation will receive the full 12.5% dollar contribution. INAC mentioned that it is a favourable project for the First Nations of Ginoogaming and Long Lake No. 58. It was stated that additional power dams may be constructed on the Long Lake section north of this project but will depend upon the success of this particular project. The replication would be easy using the Long Lake Dam Project as a template. OPA will be constantly searching for power as the years progressed. As further note, there are two other First Nations being involved on a similar project, that is Pays Platt and Pic River First Nations, on the Brookfield project on Hayes Lake producing more power that the Long Lake dam. The Hayes Lake initiative or known as the Brookfield project will produce 10 to 12 megawatts in comparison with our Long Lake 7.4 megawatts.