Mackenzie Valley Fibre Link Project

operational

Opportunity Communities in northern Canada, including parts of the Northwest Territories, often have limited access to affordable, high quality, reliable broadband telecommunication and related services typically available to residents in the southern parts of Canada. In 2010, the Government of the Northwest Territories commissioned a feasibility study for a high speed, state-of-the-art fibre optic system to link communities along the Mackenzie Valley with the closest fibre optic system in the southern part of the territory. In order to limit end user pricing of internet services, provide a more robust high-speed fibre optic telecommunications backbone capable of supporting economic growth and diversification, and facilitate the expansion of the Inuvik Satellite Station Facility, the Government of the Northwest Territories entered into a public-private partnership for a fibre optic system extending from Inuvik in the north, to McGill Lake in the south. Challenges Building approximately 1,300 km of fibre line in shifting permafrost. Building a strong working relationship with the First Nations K’ahsho Got’ine District (KGD) in order to obtain a signed agreement allowing construction on its territory between Fort Good Hope and Inuvik. Ledcor Development Ltd. fired, and is suing, Rohl Enterprises, the primary subcontractor that installed the first two-thirds of the fibre optic link. Ledcor says Rohl did not properly bury the cable and protect it against erosion. Candrill, an Alberta company that conducts directional drilling, left the project after it said parts of the line remained improperly installed. As a result of organizational changes, the project is experiencing delays of approximately one year from its original timeline. Innovations The Project Agreement includes a revenue share mechanism whereby the Contractor can earn a commission for certain customers such as large private sector entities. Results The 1,260 km link between McGill Lake near Fort Simpson and the Arctic Ocean at Tuktoyaktuk provides high speed internet to communities lacking advanced, affordable telecommunications technology. The Designated Class of End Users—who benefit from pricing benchmarked against rates paid in southern Canada – includes individuals and families seeing internet access primarily for personal use, small business owners operating for profit with no more than specified thresholds of employees and annual revenues; charitable or religious organizations; and local government authorities such as schools, colleges and universities, and emergency services and hospitals. The state-of-the-art line supports more efficient and effective delivery of government programs and services such as telehealth and education to ten communities. It provides more opportunities for business, including in the e-commerce and high-tech sectors. Using a public-private partnership generated cost savings of 13.5 per cent compared with traditional procurement. The new line allows for the expansion of the Inuvik Satellite Station Facility, a leader in remote data sensing with international clients. The new link is a significant step in creating an alternative path for communications in the case of accidental fibre cuts. “Ledcor is proud that our joint venture with Northwestel was selected by the Government of Northwest Territories to build the first fibre link between the North American Internet backbone and the Canadian Arctic Ocean. This is a historic and exciting project with many technical and logistical challenges and we look forward to commencing construction.” - Scott Lyons, COO, Ledcor LTS, member of the Northern Lights consortium

High