Community Opportunities and Involvement Agreement
The Community Opportunities and Involvement Agreement is an agreement between the GNWT and the Fort Providence community groups. It provides for an Involvement Grant of $168,000 ($8,000 per month from July 2010 through March 2012), and an Opportunities Grant of $7 million ($200,000 per year for 35 years from 2013). With the
The agreement was part of the transfer of Bridge construction and operation to the GNWT, and the winding-down of the Deh Cho Bridge Corporation. The funding is presumably designed to replace the equity return the community groups would have received as shareholders in the DCBC.
Benefit comparison for community groups
Under the old Concession Agreement, the minimum return on equity was 4.5% annually. At the maximum allowed equity of $5 million, this was a guaranteed $225,000/year, or just under $8 million over the 35 year concession period, although the amount could have been much larger depending on bridge traffic. However, only around $4.3 million of the equity was subscribed, so the guaranteed minimum would have been around $193,000.
Of the $4.3 million equity, the Fort Providence groups likely had under $1.5 million (via a federal grant - the rest was taken up by Atcon and Gamble/Jivkov. With only a third of the equity, Fort Providence's share of the guaranteed minimum would only have been around $65,000, or $2.3 million over 35 years.
Given both the cost overruns and the lower than forecast traffic numbers, it is unlikely that anything more than that minimum return would have been generated under the old concession agreement. But with the Opportunities Grant, the community is getting $200,000/year ($7 million through 2047) - this is effectively the guaranteed return on that $4.3 million in equity, but Fort Providence is getting all of it.
Community Opportunities and Involvement Agreement - PDF document.