Information for Professionals (Summary)

Inuvik to Tuktoyaktuk Highway

For more detailed information,

please call (867) 873-7764.

Last reviewed: October 2014

Communities
Inuvik
Inuvik is located in the Mackenzie Delta, 2 degrees above the Arctic Circle on the East
Channel of the Mackenzie River, and is the current northern terminus of the Dempster
Highway connecting the Inuvik region to the Yukon Highway System. The town has a
population of approximately 3,500, and is the administrative centre of the Inuvik Region.
It was designated a town, with elected mayor and council, in 1970. Inuvik is known for
its igloo-shaped church, the Lady of Victory, as well as North Americas most northern
mosque, known as little mosque on the tundra. Inuvik is also known for its Great
Northern Arts Festival, held annually in July.
Tuktoyaktuk
Tuktoyaktuk is a hamlet of approximately 930 people located on the shore of the Arctic
Ocean, northeast of Inuvik. Its location on Kugmalit Bay, near the Mackenzie River
Delta, has been used by the Inuvialuit people for centuries as a camp for harvesting
caribou and hunting beluga whales. It was also used as a jump-off point to transport
goods and supplies to other settlements in the region. Since the 1960s Tuktoyaktuk has
served as a resupply and logistical base for oil& gas explorations efforts in the
Mackenzie Delta-Beaufort Sea. The community is best known for being surrounded by
pingos, hills rising out of the otherwise flat horizon formed by a build-up of ice under the
grounds surface.
The Inuvialuit
The Inuvialuit people have made Arctic coast region their home for centuries. Their
ancestral homeland (the Inuvialuit Settlement Region) stretches along the coastline
from the Alaskan border to east of the Amundsen Gulf and inland as far as Inuvik and
the community of Aklavik. They number approximately 3,100 people. The Inuvialuit
speak up to four different dialects of the Inuvialuktun language.
The Inuvialuit Final Agreement (IFA) signed in 1984 defines the Inuvialuit lands and has
as its goals: the preservation of Inuvialuit culture and values: the inclusion of the
Inuvialuit as participants in the northern and national economy and society; and the
protection and preservation of Arctic wildlife and environment. The overall management
of the Inuvialuit Settlement Region is undertaken by the Inuvialuit Regional Corporation.
Its mandate is to continually improve the economic, social and cultural well-being of the
Inuvialuit.

Last reviewed: October 2014

Community Benefits
Tuktoyaktuk is currently connected to the NWT Highway System each winter by a 187
kilometer ice road constructed each year by DOT along the East Channel of the
Mackenzie River and across Kugmallit Bay. During the remainder of the year
Tuktoyaktuk is only accessible by air and water, resulting in high transportation costs.
Connecting Inuvik and Tuktoyaktuk with an all-weather road has been a major priority
for the both communities and the government since the 1960s. Both its construction and
completion will bring innumerable benefits to the people of the region and to Canada as
a nation. This project has the potential to involve more Northern workers than any other
capital project in NWT history through the construction phase. Once complete, the
connection between the two communities will have many positive impacts in the region,
such as:

More than 1,000 person years of employment and 40 long-term jobs will be created
in the north, plus another 860 and 9 long-term jobs in other parts of Canada;

Residents of Tuktoyaktuk will benefit from a reduced cost of living (approximately

$1.5 million in savings), as goods will be able to be shipped year-round;

Tourism is projected to increase by $2.7 million annually, creating 22 full-time

equivalent jobs in the NWT;

Inuviks role as regional commercial and business hub will be strengthened and
expanded;

Opportunities for family, social, recreational and sporting interactions will increase;
and,

Residents will have improved access to health care, educational and economic
opportunities.

The Inuvik to Tuktoyaktuk Project Description report was developed through a

partnership between the Department of Transportation, the Town of Inuvik, and the
Hamlet of Tuktoyaktuk.
Through the consultation period, the GNWT took an approach that valued local and
traditional knowledge, regional highway construction and operations expertise, lifestyles
and opinions, and the partners designed a project that would best fit the needs of the
people, communities, industry and the territory. The GNWT is committed to working with

Last reviewed: October 2014

Aboriginal governments and business in the planning, design and development of this
project
The unique collaborative process was recognized by the Institute of Public
Administration of Canada (IPAC) in 2012 for innovative management in engaging
Aboriginal government in planning and consultation for the overall Mackenzie Valley
Highway project. The entire Mackenzie Valley Highway Project will be developed using
this approach to open and responsive consultation with local and regional partners.

Last reviewed: October 2014

Training and Employment

The Inuvik to Tuktoyaktuk Highway Project provides invaluable training and employment
for Tuktoyaktuk and Inuvik residents, as well as residents of the rest of the NWT. During
the winter 2013 construction season, approximately 150 Tuktoyaktuk and Inuvik
residents were employed, and approximately 50 other NWT residents. Over 30 people
were also employed on the geotechnical investigations throughout spring 2013. The
continuation of the project from the Source 177 Gravel Access road to the rest of the
highway will increase local employment for the duration of the project and on highway
maintenance in the long-term future.
The Inuvialuit Regional Corporation (IRC) and local Inuvialuit corporations have been
working extensively to provide training to their beneficiaries so that they can gain the
most benefit from the work being done in the region. Joint venture contracting partners
are committed to working with these organizations and the territorial and federal
governments to provide training programs throughout the project.
Driver Training Program
Contractor E. Grubens Transport Ltd (EGT) developed a Class 1 and Class 3 Driver
Training Course in Tuktoyaktuk to respond to the need for capable truck drivers and
heavy equipment drivers.
Workplace Readiness Program
Northwind Industries Ltd. (Northwind) runs an 11-week workplace readiness program
for Aboriginal workers. The course is run in partnership with the IRC and the Gwichin
Tribal Council, as well as the territorial and federal governments. The training program
is designed to prepare young people for what may be their first job in the workforce, or
as a refresher for people who have been out of work for some time. Graduates will be in
a much stronger position to apply with the joint venture for jobs on the project.

Last reviewed: October 2014

History

1960s: The concept of an all-weather road between Inuvik and Tuktoyaktuk is

developed and becomes a priority goal of both communities and the residents of the
Inuvialuit Settlement Region.

1960s: beginning of offshore and onshore oil & gas exploration in the Beaufort Sea
and Mackenzie Deltas, with offshore activities reaching a peak in the mid 1970s to
late 1980s;

1974: Public Works Canada identifies and surveys a 140 km land route between
Inuvik and Tuktoyaktuk, including preliminary engineering studies, survey maps,
design profiles and identification of gravel sources;

1984: signing of the Inuvialuit Final Agreement by the Inuvialuit; Government of

Canada; Government of the Northwest Territories and Government of the Yukon
Territory.

1990s: The Government of the Northwest Territories (GNWT) reviews earlier

studies, collects additional environmental and socio-economic information, conducts
community consultations, and re-examines the routing and the design.

1998: The GNWT releases a comprehensive report entitled the Proposed Inuvik to
Tuktoyaktuk Road Environmental and Socio-Economic Baseline Report.

1999: The GNWT completes a Cost Benefit Analysis, as well as a GNWT

Department of Transportation Highway Strategy describing the completion of the ITH
Project as a major policy objective of the GNWT.

Early 2000s: The GNWT opens a dialogue with the Government of Canada about
the ITH project during proposals for infrastructure development.

Late 2000s: Planning for the Mackenzie Gas Project, aimed at extracting and
transporting Mackenzie Delta natural gas and gas liquids to North-American
customers.

August 2009: The Town of Inuvik and the Hamlet of Tuktoyaktuk receive
confirmation that the Canadian Northern Economic Development Agency (CanNor)
would fund the completion of a Project Description Report for the Inuvik to
Tuktoyaktuk Highway.

February 2010: The Project Description Report is released by the Government of

the Northwest Territories, the Town of Inuvik, and the Hamlet of Tuktoyaktuk.

April 2010: The project is referred to the Environmental Impact Review Board
(EIRB) for a public environmental assessment and review.

June 2010: The Department of Transportation releases its economic analysis of the
project.

Autumn 2010: The EIRB holds community and public consultation meetings on the
draft EIS Terms of Reference.

Last reviewed: October 2014

Summer 2011: The EIRB holds public consultations on the conformity Review of the
draft EIS.

Summer 2012: The EIRD invites the public to be involved in the Technical
Sessions.

September 2012: The EIRB holds public hearings on the ITH project.

January 2013: The Environmental Impact Review Board submits their final report on
the proposal to construct the Inuvik to Tuktoyaktuk Highway. The panel recommends
the project move forward, with recommendations.

February 2013: The GNWT responds to the EIRB report.

May 2013: The GNWT releases its Risk Matrix report for the project.

Winter/Spring 2013: Environmental Regulations and Permitting process underway.

Winter/Spring 2013: Work begins on upgrading the Source 177 gravel access road
to Canadian highway standards. The road will eventually become the first 19
kilometres of the Inuvik to Tuktoyaktuk Highway.

Summer/Fall 2013: Work begins on upgrading Navy Road in the Town of Inuvik to
Canadian highway standards. This five kilometre road will eventually connect to the
southern end of the Inuvik to Tuktoyaktuk portion of the Mackenzie Valley Highway

Summer/Fall 2013: Department of Transportation submits Water Licence

application to the NWT Water Board, and Land Use and Quarrying Permit
applications to the Inuvialuit Land Administration and to Aboriginal Affairs and
Northern Development Canada

October 2013: Public Hearings on the Water Licence application are held in Inuvik
and Tuktoyaktuk

December 2013: The NWT Water Board issues the Water Licence. Aboriginal
Affairs and Northern Development Canada issues Land Use and Quarrying Permits
for the project

January 2014: The Inuvialuit Regional Corporation and the Government of the
Northwest Territories reach agreement on royalties and land exchange for the
project

January 2014: Inuvialuit Land Administration issues Land Use and Quarrying
Permits for the project

January 2014: EGT - Northwind Ltd. provided with authorization to proceed with
construction of the Inuvik to Tuktoyaktuk Highway, and initiates construction.

Last reviewed: October 2014

Environment
DOT prepared a comprehensive Environmental Management Plan to mitigate adverse
environmental effects from the Inuvik to Tuktoyaktuk highway project. This includes the
following:

Wildlife and Wildlife Protection Plan

Wildlife Effects Monitoring Program (with ENR GNWT)
Fish and Fish Habitat Protection Plan
Sediment and Erosion Control Plan
Aquatic Effects Monitoring Plan and Surveillance Network Program
Safe Work Procedure Fuel Equipment
Safe Work Procedure Handling Petroleum
Spill Response Procedure/Spill Contingency Plan
Waste Management Plan
Pit Development Plans
Explosives Management Plan
Emergency Response Plan

Last reviewed: October 2014

Regulatory Process & Permitting

The Inuvik to Tuktoyaktuk Highway Project was referred to the Environmental Impact
Review Board (EIRB) in April 2010, just two months after the Project Description Report
was released by the Government of the Northwest Territories. From summer 2010 to
summer 2011, the EIRB held community and public consultation meetings on the EIS
Terms of Reference and subsequent drafts. Technical sessions and public hearings in
the communities were held throughout 2012.
In January 2013, the EIRB released their final report. The report recognized that the
Inuvialuit land claim institutions and co-management bodies share environmental
protection responsibilities with the regulatory authorities and must work together to
implement shared work on the way forward. The panel recognized the significant
potential benefit of the project to the region and recommended the project move
forward, with certain recommendations.
DOT has procured all necessary licences and permits to enable construction to begin.
This includes the following:

NWT Water Board Licence

ILA Land Use Permit
AANDC Land Use Permit
ILA Quarry Licence (one per source)
DFO Operational Statement Notification
Transport Canada Navigable Waters Authorization

Department of Fisheries and Oceans Letter of Advice received permitting construction

of all watercourse crossing structures.

Last reviewed: October 2014

Land & Permafrost

Planning for the Inuvik to Tuktoyaktuk Highway required years of research, study and
analysis. Each section of the road had to be studied for its unique features, both above
and below the surface. The Department of Transportation commissioned several
studies, including:

Watercourse Tracking and Crossing Recommendations Table (Jan 2012) (goes over
and assesses each water crossing and recommends to build culvert/bridge etc,
assess fish habitat)

Inuvik to Tuktoyaktuk Highway - Baseline Data Acquisition Program Terrain

Evaluation (aerial evaluation)

Terrain Analysis Pingo study map

Inuvik Airport Geophysics Investigation: Final Report (permafrost)

Inuvik Tuktoyaktuk Highway 2013-2014 Geotechnical Investigations Program

Surficial Geology and Terriain Constraints Inuvik to Tuktoyaktuk Highway

The ITH project area spans two distinct ecoregions: the Mackenzie Delta and the
Tuktoyaktuk Coastal Plain. The Mackenzie Delta Ecoregion is part of the Taiga Plain
Ecozone and consists of the southern two-thirds portion of the Mackenzie River Delta.
Terrain in this area is characterized by a complex network of small lakes and
interconnected channels. North and east of the Mackenzie Delta is the Tuktoyaktuk
Coastal Plain. This ecozone includes the active portion of the Mackenzie River delta as
well as uplands areas.
More specifically, the terrain along the ITH project area consist of rolling to gently
undulating landscape characterized by glacial and post glacial deposits. These
materials are deposited by streams and gravity related processes and are found along
water courses and moderate to steep slopes. Very poorly-drained peat-covered areas
are very common throughout the terrain, particularly in low-lying areas and nearby small
bodies of water.
Detailed terrain and surficial material characterization and mapping in the project area
was undertaken by KAVIK-STANTEC in 2012.The region is underlain by continuous
permafrost with sediments often containing excess ice in the form of ice veins, lenses,
wedges, and massive ice (Rampton 1988). Permafrost creates distinctive landforms
throughout the area, such as polygonal networks and the areas famous pingos. The

Last reviewed: October 2014

active layer (the portion that thaws seasonally) varies in depth greatly, depending on the
type of terrain and conditions such as water drainage, terrain details, etc. Work from
Tarnocai et al. (2004) in the Inuvik Tuktoyaktuk area indicates that active layer range
anywhere from 30 cm to over 150 cm.
One of the most unique and special features of the northern Northwest Territories is its
permafrost. Not altering or damaging the permafrost was one of the project partners
primary concerns in developing the plan for the Inuvik to Tuktoyaktuk Highway.
Normally, road building requires a technique called cut and fill. These traditional
construction methods cut into protective layers of surface vegetation and organics, with
the possible results of a thawing in the permafrost below. To protect the permafrost
along the proposed Highway alignment, cut and fill techniques will not be used for this
project.
To protect the permafrost our design will use only fills the ground will not be cut into.
Instead, to reinforce the road, geotextile fabric will be placed between the existing
ground and the construction materials along the entire highway. Geotextiles are special,
permeable fabrics that are used to reinforce and strengthen roads.

Last reviewed: October 2014

Greenhouse Gas Emissions

The Department of Transportation is committed to undertake the construction of the
Inuvik to Tuktoyaktuk Highway responsibly, to the benefit of the people, economy, and
environment of the region and all of Canada. To that end, the effect of this project on
Greenhouse Gas (GHG) Emissions has been studied. The preliminary report is
summarized below, or click here to view the full report.
The research was dedicated to determining what the current GHG emission levels are,
projecting what they could look like after the road is built, and determining what they will
likely be during the construction of the project.
The current travel situation between Inuvik and Tuktoyaktuk involves the annual
construction of a 187 km winter road, which operates for between three and four months
every year. The rest of the time, flights operate between the communities. During the
winter road seasons, the number of flights is cut in half. Barges transport both personal
and industry supplies, which is expected to continue after the construction of the road
and so was not included in the calculation.
Before and After Construction
Currently, light (personal) vehicle traffic GHG emissions are estimated at an average of
745 tonnes of CO2 per year, commercial vehicles are estimated at 263 tonnes/year,
and air travel (at a current 3,330 scheduled and charter flights per year) is estimated at
3,630 tonnes of CO2 per year.

Last reviewed: October 2014

Estimated Total Baseline CO2 Emissions per Year (Tonnes)

After construction of the highway, it is expected that the number of vehicles on the road
will range from 60 to 175 per day. Therefore, both a low traffic and a high traffic
scenario are considered in the projections. Light (personal) travel is projected to release
between 895 and 2,612 tonnes of CO2 annually. Commercial travel is projected at
between 2,190 and 6,400 tonnes per year. Air travel is expected to decrease
significantly, putting the GHG emission projection for air travel at 1,144 tonnes of CO2
per year.

Last reviewed: October 2014

Comparing Baseline and Projected Total CO2 Emissions (Tonnes) Low Traffic
Scenario

Reducing/Offsetting CO2 Emissions During Construction

The Department of Transportation will be making all reasonable attempts to reduce
and/or offset carbon emissions during the construction phase of the project. Reductions
in GHG emissions can be achieved by being as efficient as possible in planning and
operations. This can include:

Reduction in service level of the road which will reduce the amount of
embankment material

Increased geotechnical investigations to identify more immediate sources of material

and reduce haul distances

Right-Sizing On-Road Fleets

Modernizing Fleets and Equipment

Alternate Fuels

Maintaining Trucks and Equipment

Last reviewed: October 2014

Idle Reduction Equipment

Driver Behaviour

A combination of efficiencies could reasonably translate into a reduction of GHG of 10%

to 25% of the total project amount.

Last reviewed: October 2014

Water
The Inuvik to Tuktoyaktuk Highway route will cross numerous streams and waterways,
and pass by many lakes. It is therefore important study these water bodies to ensure
the ITH project does not have negative effects on the water, terrain and habitat for fish
and other creatures provided by these bodies of water.
The region of the ITH project includes three separate drainage areas within two
watersheds. The majority drains into the Husky Lakes, while less than 10 percent drains
into the Mackenzie River (primarily the area around Inuvik). The most northerly portion
drains into Kugmallit Bay and Tuktoyaktuk Harbour.
The surface water in the region is influenced by long cold winters, short cool summers
and relatively low precipitation. The low-lying terrain also influences the hydrology,
causing a diffuse system of drainage patterns. The many shallow lakes and ponds, as
well as deeper larger lakes such as Husky Lakes, Parsons, Noell and Jimmy lakes, are
usually connected through small creeks.
Because permafrost lies between 30 to 150 centimetres below the surface, the amount
of drainage below the surface is limited. Most spring runoff drains into nearby wetland
and lake systems. In peat or interhummock channel areas, though, runoff tends to go
into streams as well. Most of the smaller shallow lakes, ponds, and streams freeze to, or
near to the bottom during the winter period. Larger streams such as Zed Creek and
Hans Creek may not freeze to the bottom and maintain running water throughout the
year. Chlorine and sodium, resulting from the nearby salt water Beaufort Sea, are the
dominant ions found in the regions lakes.
Total metal concentrations in the Lower Mackenzie sub-basin are typically lower than
guideline levels for aquatic health and drinking water but seasonally high levels can
occur with increased discharge and suspended sediment loads as occurs during spring
run-off.

Last reviewed: October 2014

Wildlife
All project partners are committed to ensuring that the development of the Inuvik to
Tuktoyaktuk Highway does not adversely affect the wildlife of the region. The
Tuktoyaktuk Peninsula supports a wide variety of wildlife. Approximately 23 species of
land mammals make their home in the region of the highway project. Their abundance
and distribution varies considerably, depending on the terrain and other circumstances.
Approximately 137 bird species have been recorded in the region of the Mackenzie
Delta and Tuktoyaktuk Peninsula. Most of these bird species are migrants; however, 17
are year-round residents, 101 nest and/or moult and remain during the summer and 19
are rare transients or visitors. A further 39 species have been reported, but not
confirmed.
Developments such as roads may affect wildlife to varying degrees, depending on the
species. There are generally six types of possible effects: individual disruption, social
disruption, habitat avoidance, habitat disruption or enhancement, direct and indirect
mortality, and population effects. Department of Transportation studies have determined
that during the construction of the Inuvik to Tuktoyaktuk highway, minimal habitat will be
directly altered; however, indirect effects from hunting and trapping or increased
predation by carnivores, or direct effects from wildlife-vehicle collisions may occur.
The proposed Inuvik to Tuktoyaktuk Highway will cross numerous ephemeral and
permanent streams, and come near many lakes along its route. It is therefore important
to identify the fish and fish habitat that these water bodies sustain to develop strategies
designed to protect fish populations. Fish are ecologically important, and socially and
economically valuable to northern residents. The DOT has identified the species that
may be affected by highway construction and operation.
Generally, fish surveys identified the following species as possibly using habitats along
the route: lake whitefish, round whitefish, inconnu, northern pike, Arctic grayling, lake
trout, burbot, least cisco, ninespine stickleback, and sculpin. It is unlikely that any of the
streams along the highway route would provide overwintering habitat due to complete
freezing.

Last reviewed: October 2014

Design/Technical
Background
The Inuvik to Tuktoyaktuk Highway is made up of three parts: the Tuktoyaktuk to
Source 177 Access Road, Navy Road in the Town of Inuvik, and the 120 kilometre
section that connects the two (overall referred to as the Inuvik-Tuk Highway).
The Highway was conceived in partnership with the Government of the Northwest
Territories, the Hamlet of Tuktoyaktuk and the Town of Inuvik. The Highway will be 138
km long and will be located within the Inuvialuit Settlement Region. Approximately 71
km will be on Inuvialuit private lands which are maintained by the Inuvialuit Lands
Administration. The rest of the route is located on Crown lands, which are maintained by
Aboriginal Affairs and Northern Development Canada. Administration of Crown Lands
will be transferred to the GNWT in April 2014.
The raw resources required for the highway will be sourced from selected locations near
the Highway route. Operations will require a two lane gravel roadway (8 to 9 m wide
with 3:1 side-slopes) with short span single lane bridges at select stream crossings. The
DoT has determined that eight to eleven stream crossing locations will require a bridge,
while culverts will be used in most other locations.
To protect the permafrost along the proposed Highway alignment, typical cut and fill
techniques that are normally used in southern areas of the Northwest Territories and
elsewhere will not be used for this project. These traditional construction methods cut
into protective layers of surface vegetation and organics, with the possible results of a
thawing in the permafrost below. To protect the permafrost our design will use only fills.
Geotextile fabric will be placed between the existing ground and the construction
materials along the entire highway. The bulk of construction activities will take place
during the winter months to preserve the permafrost.
The design of the ITH is being engineered by EGT Northwind Ltd. under a contract with
DOT. Their design team consists of experienced and qualified technical experts with
significant experience designing, building and operating transportation projects ice-rich
terrain. DOT retains staff and advisors able to effectively guide, review, evaluate and
recommend approval of the final design prior to initiating construction.

Last reviewed: October 2014

Construction
BACKGROUND
The Inuvik to Tuktoyaktuk Highway is divided into three sections: the Source 177
Access Road, Navy Road, and the road connecting these two (called the Inuvik-Tuk
Highway).
Contractors E. Grubens Transport Ltd (EGT) and Northwind Industries Ltd (Northwind)
joined together in a 50/50 venture to complete the Source 177 upgrade during the
winter/spring 2013 construction season. Extending 19 kilometres out of Tuktoyaktuk,
this section of the road provides access to Source 177, a major gravel source for the
construction of the highway, and joins with the highway to create the entrance to
Tuktoyaktuk. Source 177 contains approximately 470,000 cubic metres of material.
Over the winter 2012/2013 construction season, the embankment was upgraded,
culverts were provided and extended and the geotextile material was applied.
Compaction and leveling the grade and side slopes were also completed, as well as
geotechnical work such as testing borrow material pits, bridge locations and highway
alignment.
Work on the Source 177 Access road provides a practical model for how the full InuvikTuktoyaktuk Highway will be constructed. Construction will likely take four winter
seasons and will proceed from both the north and south ends (Source 177 Access Road
and Navy Road, respectively).
Construction will be seasonal, with geotextile and building lifts of granular material in the
winter, and final shaping, compaction and placement of granular topping during the
summer periods.
Project Management
The project is under the management of the Government of the Northwest Territories
Department of Transportation. Once completed the Inuvik to Tuktoyaktuk will become
part of the NWT Highway System.

Last reviewed: October 2014

Mackenzie Valley Highway

The Inuvik to Tuktoyaktuk Highway is the northernmost section of the envisioned
Mackenzie Valley Highway.
In 2009, an independent study on the economic effects of building the Mackenzie Valley
Highway identified four overall economic effects from the proposed project.
1. Economic activity arising from the building and maintaining of the highway;
2. Reduction in the cost of living for communities that would be given all-weather access
to southern markets and distribution;
3. An increase in tourism activities; and
4. Beneficial impacts on economic activity arising from the Mackenzie Gas Pipeline
(MGP) project, including natural-gas field exploration and development in the
Mackenzie Valley region.
The economic activity arising from the new highway is significant - 7,785 one-time jobs
in the NWT and 6,297 one-time jobs in the rest of Canada during the period of
construction. 128 permanent jobs would be created in the NWT for maintenance of the
highway once construction was completed.
In addition, the Government of Northwest Territories would save $1.3 million annually
from the elimination of the need for winter road and ice crossing construction, money
which could be invested elsewhere.
By reducing transport costs in the Sahtu, Gwich'in, and Beaufort-Delta regions, the cost
of living for residents in those areas will decline, improving economic well-being overall.
Residents will save $15.7 million annually, with positive benefits for the NWT economy.
Tourism is an important part of the NWT economy. The construction of the new
highway is expected to increase the number of tourists visiting the NWT significantly.
The economic benefits arising from this increase in tourism activity could translate into
more than one half million dollars in increased economic activity, and 10 new
permanent jobs annually.
The energy sector provides both jobs and economic activity important to the NWT. If the
Mackenzie Gas Project pipeline is built, and the new highway is built in the same area,
energy firms would save an estimated $1.215 billion (2009 dollars) over the 45 year

Last reviewed: October 2014

operating period of the pipeline due to reduced exploration and well-development costs.
Corporate after-tax returns would increase by almost $2 billion, increasing the economic
viability of many exploration projects.
In sum, the building of the Mackenzie Valley All-Weather Road from Wrigley to
Tuktoyaktuk will benefit residents of the NWT and all Canadians by spurring economic
activity, reducing the cost of living for area residents, and by improving and extending
Canada's national highway system.

Last reviewed: October 2014

Project Description Reports: Mackenzie Valley Highway

Completion of Project Description Reports (PDR) for the various sections of this road is
an essential step in completing the engineering and environmental work required to
complete an environmental assessment for this road.
Total funding in the amount of $8 million to develop regional PDRs was cost shared
50/50 between the GNWT and the federal Canadian Northern Economic Development
Agency (CanNor).
The Department of Transportation (DOT) worked with Land Claims groups and
organizations along the proposed highway alignment on the necessary arrangements to
enable PDR work to be undertaken.

Inuvialuit Settlement Region

In September 2009, DOT, the Town of Inuvik and the Hamlet of Tuktoyaktuk signed an
MOU to see work on the Project Description Report (PDR) for the Inuvik-Tuktoyaktuk
Road completed. Initial funding for this work ($975,000) was provided directly by
CanNor.

Working with the Town of Inuvik and Hamlet of Tuktoyaktuk, the PDR was filed with the
Environmental Impact Screening Committee (EISC) on April 21, 2010. The EISC
referred this project to the Environmental Impact Review Board (EIRB). The EIRB
released the final terms of reference for the environmental impact statement (EIS) on
November 3, 2010.

Gwichin Settlement Area

DOT and the Gwichin Tribal Council signed an MOU and related Contribution
Agreement ($2.2 million) to see work on a PDR for the MVH within the Gwichin
Settlement Area completed. Work on the PDR was started May 6, 2010. A second
round of community consultations was held the week of November 22, 2010. A third

Last reviewed: October 2014

round was completed March 14 to March 17, 2011. The completed PDR was presented
to DOT June 14, 2011.

Kahsho Gotine Sahtu Settlement Area

DOT worked with the Kahsho Development Foundation to develop a MOU to see work
on the MVH PDR within the Kahsho Gotine District of the Sahtu Settlement Area
completed. An MOU and Contribution Agreement ($2.2 million) was signed by the
Kahsho Development Foundation and DOT October 22, 2010. The PDR for the Kahsho
Gotine was completed and handed over to DOT on March 2, 2012.

Tulita District Sahtu Settlement Area

DOT and 5658 NWT Ltd (Tulita Land Corporation, Norman Wells Land Corporation,
Fort Norman Metis Land Corporation and Tulita Dene Band) signed an MOU and
contribution agreement ($1.864 million) to see work on the MVH PDR within the Tulita
District of the Sahtu Settlement Area completed. Field work and initial community
consultations were initiated. A second round of consultations was undertaken March 28
and 29, 2011. The PDR was completed in October 2011 and handed over the DOT at a
ceremony in Norman Wells on November 30, 2011.

Deh Cho Region

DOT provided a presentation on MVH PDR work to Deh Cho First Nations (DFN) on
May 12, 2010. Subsequent to the presentation DFN passed a resolution supporting
creation of a Working Group to support PDR work. The Department met with Pehdzeh
Ki First Nation (Wrigley) on June 9, 2010 to move this initiative forward. A MOU to see
PDR work completed in the Deh Cho region was signed on October 27, 2010. A related
contribution agreement in the amount of $400 000 was executed between the parties.

Last reviewed: October 2014