The Highway will be a public, all-weather highway under the management and operation of the Government of Northwest Territories Department of Transportation. The Mackenzie Valley Higway project is about creating a link in the Northwest Teritories beginning from Wrigley ( Dehcho Region) to Tuktoyaktuk (Inuvik region). There are five administrative regions in the Northwest Teritories:
- Inuvik Region – regional office situated in Inuvik
- Sahtu Region – regional office situated in Norman Wells
- Dehcho Region – regional office situated in Fort Simpson
- North Slave Region – regional office situated in Behchoko and Yellowknife
- South Slave Region – regional office situated in Fort Smith and Hay River
The Mackenzie Valley Highway passes and connects through three of them (Inuvik, Sahto and Dehcho Region) – fact that speaks for itself and the meaning and magnitude of this project. The total construction cost, from Wrigley to Inuvik: $1.67 billion, including $1.3 billion for road building, $223 million for bridge construction, and $178 million for engineering. The Inuvik to Tuktoyaktuk Highway will be constructed and operated in conformance with applicable highway standards. The Highway will be a public, all-weather highway under the management and operation of the Government of Northwest Territories Department of Transportation. This will allow for year round use by haul trucks and passenger vehicles according to the size and weight limitations as defined in the Northwest Territories highway regulations. The posted speed limit on the Highway will be 80 km/hr.
About the reasons for the Mackenzie Valley Higway Project
The reasons for building the Mackenzie Valley Highway are:
1. Provide a year-round transportation link connecting the Mackenzie Delta and the Mackenzie Valley with the rest of the Northwest Territories and Canada
2. Support resource exploration, development, and production to stimulate the regional economy
3. Decrease the cost of living by increasing access to good and services
4. Increase access to health care, education, training resources and employment opportunities
5. Enable communities and families to share social, cultural, recreational and sports activities
6. Develop hospitality and tourism markets and other businesses
7. Deliver governments’ commitments for Northwest Territories regional economic development
8. Reduce the cost of delivering government services
9. More recently, provide fibre optic cable from southern Canada to the Beaufort Sea to enhance communications and support future development.
About the benefits of the Mackenzie Valley Project
1. Coast to coast link
The vision of a highway through the Mackenzie Valley to the Arctic Coast has been considered a strategic priority for Canada as far back as 1958 by the federal government. This road was seen as the final link to connect Canada from coast to coast to coast.
2. Easier community communication —> Lower livng cost
business development, diversification, competitiveness,
The construction of a north-south highway will strengthen connections among communities, reducing living costs for Northerners while making businesses more competitive and creating meaningful opportunities to diversify the economy in many remote communities. By reducing transport costs in the Sahtu, Gwich’in, and Beaufort-Delta regions, the cost of living for residents in those areas will decline. Residents will save $15.7 million annually, with positive benefits for the NWT economy.
3. An increase in the economic activity from the building and maintaining of the highway
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.
4. An increase in tourism activities
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. 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.
5. 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 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 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. The Mackenzie Valley Highway is vital to reach the NWT’s oil and gas, minerals and metals, as well as lakes and rivers with hydroelectric power potential. The Highway will help Canada deal with natural disasters and environmental emergencies that could potentially take place in the Mackenzie Valley and along the Arctic Coast. It will also help ensure the safety and security of the Western Arctic. The Mackenzie Valley Highway will also assist in adapting to changing climactic conditions. An all-weather link through the Mackenzie Valley would alleviate the increasing problems associated with reduced winter road reliability and reduced periods of operation. Once the Mackenzey Valley Highway is in place, there will be no need for the temporary winter-road to be built. This will result in annual savings to the GNWT.