The Equity return for the DCBC was the amount of money it would have earned as a return on its Invested Equity. As set out in the Concession Agreement, they were guaranteed an annual 4.5% Base Return. If sufficient excess funds were available in a year, they would then haven taken out an additional 15% Enhanced Return. Any remaining funds would have been divided equally between the DCBC and the GNWT as the Shared Return.
With the termination of the Concession Agreement in 2010 when the GNWT took over the Bridge project, the DCBC's equity `(somewhere in the range of $1.4 million) was absorbed by the GNWT. In return, the Fort Providence community groups will receive money from the Involvement and Opportunities grants over a 35+ year period. Given the level of additional debt from the construction overruns, the DCBC would likely have been limited to its guaranteed base return of $63,000 annually for the life of the agreement, around $2.2 million. The grants will instead provide a total of around $7.2 million through the year 2047.
|This artice defines a term from the now-terminated Concession Agreement.|