The First Nations Major Projects Coalition (FNMPC) welcomes the Government of Canada’s loan guarantee decision

The First Nations Major Projects Coalition (FNMPC) welcomes the Government of Canada’s decision, prior to the election call, to increase the Canada Indigenous Loan Guarantee Corporation’s funding authority from $5 billion to $10 billion and to expand the Indigenous Loan Guarantee Program’s (ILGP) mandate beyond the natural resource sector to include major infrastructure, transportation, and trade projects.

This announcement is a meaningful step towards advancing Indigenous economic participation and equity partnerships and strengthening the Canadian economy in alignment with the United Nations Declaration on the Rights of Indigenous Peoples. 

“FNMPC has consistently endorsed a flexible and sector-agnostic approach to ensure that First Nations can advance the equity investments that reflect their interests and values as rights-holders,” stated Sharleen Gale, Executive Chairperson of FNMPC’s Board of Directors.

“This initiative is exactly what is required to build a more resilient economy and continue in the right direction on our shared path of economic reconciliation.”

Based on FNMPC’s projections, it was clear that the ILGP’s original $5 billion in equity loan guarantee support would be oversubscribed. Roughly $630 billion of capital investments are planned in the next 10 years in major energy, mining, and forestry projects alone—not to mention infrastructure, transportation, and trade projects. FNMPC projects that $50 billion or more will be needed to support First Nation equity investment in these major projects.

By taking additional action to address this access to capital barrier, the federal government is helping to create the conditions necessary for building strong, collaborative partnerships with impacted Indigenous nations that are essential for obtaining the social license and advancing and expediting major projects in Canada. 

“As we move to strengthen and diversify Canada’s economy and to sharpen its competitive edge in global markets, First Nation partnerships and leadership in major project developments from coast to coast is essential,” said Mark Podlasly, FNMPC’s CEO.

“From the energy and mining developments required to unlock the country’s natural resource wealth to the road, rail, and port infrastructure connecting Canadian goods to export markets, First Nations will play an important role in ensuring that major projects are developed efficiently, sustainably, and to the mutual benefit of all Canadians.”

FNMPC reaffirms its neutral and non-partisan stance with Canadians heading into the federal election. Notwithstanding the election outcome, FNMPC will continue working tirelessly to advance the economic and environmental interests of its First Nation members and to ensure that First Nations are meaningful participants and stewards in the development and protection of their lands and waters.