Phase I funding A business model something similar to this is a possiblity for funding Frontier's Phase I, considering that Frontier's board of directors already includes the ex band chief of Sandy Lake first nations.
Canada to Sell Pipeline Stake to Indigenous Groups Through Special Vehicle
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The groups will be provided with access to capital so they don’t have to risk their own money to participate, according to a letter from Deputy Prime Minister Chrystia Freeland’s office seen by Bloomberg. The communities’ equity interest in Trans Mountain will provide them with cash flows and allow them to jointly exercise governing rights, according to the letter, which was dated Aug. 2.
The plan partly clears up how Prime Minister Justin Trudeau’s government will handle the sale of the pipeline that his administration saved from cancellation by buying it for C$4.5 billion ($3.3 billion) in 2018. While some indigenous groups have opposed the Trans Mountain expansion, which crosses through many of their territories, others have banded together into bidding groups to pursue stakes in the pipeline to generate revenue for their communities.
Indigenous groups that take part in the special-purpose vehicle won’t be excluded from participating in later rounds offering additional equity in Trans Mountain, the letter said. The government will soon begin discussions with indigenous groups along the pipeline’s route and shipping corridor, according to the letter.