Long Lake Dam Hydro – Electric

The project started during year 2006 and required the participation of two First Nations, Ginoogaming and Long Lake No. 58. Preliminary work was started on looking at the viability of the project and the funding requirements. Later, the project was temporarily halted but work on the development continued with Ontario Power Generation (OPG) who is working for the Ontario Power Authority (OPA). The development work continued to the point of securing initial funding from Indian and Northern Affairs Canada and progressing further into the project development. On October 7, 2008 starting at 9:00 a.m. at the Fort William First Nation Cultural Centre, a meeting was held between Indian and Northern Affairs Canada, Ginoogaming First Nation, Long Lake No. 58 First Nation and Aboriginal Business Network on the Long Lake Dam Hydro-Development Project. The Thunder Bay meeting was set up by Doris Odjick, Indian and Northern Affairs to restart the Long Lake Dam Hydro-Development Project that was stalled for funding. INAC will release $1 million funds to restart the project for 3 years which could be separated as $200K year 2008/09, $600K year 009/10, and $200K year 2010/11. These dollars are needed towards the project. The cost of the project is $51.2 million with equity required from participating First Nations. 25% of the equity in year 2010 dollars is $12.8 million. Therefore, Ginoogaming and Long Lake 58 will be responsible for the $12.8 million.


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.

The purpose of the meeting was to enlighten everyone that INAC dollars will flow after INAC receives necessary documentation from Wayne Greer to satisfy Ottawa of the developments. We have to produce new Band Council Resolutions. In time, a total of four First Nations will be benefitting from the two separate initiatives which the government totally supports for First Nations revenues.

hydro dam