First Nation Strategic Partnerships Dan Rochon, CA Controller - PowerPoint PPT Presentation

First Nation Strategic Partnerships Dan Rochon, CA Controller

Agenda • Background • Industry Needs • First Nation Participation • Joint Venture Process • Practical Examples • Factors for Success 2 RESPECT. BUILDING. PROGRESS.

ATCO Group Overview • Founded in 1947 • Pioneered modular accommodation design for remote locations • 9,000 employees worldwide • Headquartered in Calgary, AB • TSX symbol (ACO.X) • Revenues of $4 billion • Assets of $17 billion • Major Business Lines:  Electricity and natural gas transmission  Power generation  Modular buildings manufacturing  Construction 3 RESPECT. BUILDING. PROGRESS.

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Holistic Engagement Process™ •Custom designed projects •Relationship building •Culturally sensitive and affordable •Infrastructure assessment •Durable and low maintenance •Member skill-gap assessment •Long-term growth planning •Design-build process •Infrastructure development •Single point of contact •Economic development •Simplified communications •Community planning •On-time, on-budget completion On-job training opportunities | Bursaries and grants | Operations and maintenance training 5 RESPECT. BUILDING. PROGRESS.

ATCO’s Designs Commercial Spaces Residential Solutions Educational Facilities Retail facilities Multi-family apartments Classroom additions Gas stations Single family housing Daycares Motel/hotel Elders centres Schools 6 RESPECT. BUILDING. PROGRESS.

ATCO’s Designs Community Infrastructure Recreational Complexes Health Care Maintenance facilities Indoor soccer facilities Diagnostic centres Fire stations Hockey arenas Medical clinics Band offices Gymnasiums Hospitals 7 RESPECT. BUILDING. PROGRESS.

Citizen Potawatomi Nation In Oklahoma • Keys to success – Organizational and legal infrastructure – Revamped constitution – Commercial code – Separation of business from political organization • Net result – Gone from assets of 2 ½ acres of trust land and $550 in bank account to a portfolio of diversified businesses 8 RESPECT. BUILDING. PROGRESS.

Other Successful First Nations • Westland and Osooyos in BC • Kainai and Tsuu T’ina in Alberta • Peter Balantyne and Onion Lake Cree Nations in Saskatchewan • Kehnawake and Membertou in the East 9 RESPECT. BUILDING. PROGRESS.

The Industry 10 RESPECT. BUILDING. PROGRESS.

Industry Needs • Evidence of good governance • Separation of business from politics • Expectation of financial success • Being welcomed into the community • Willing to build bridges – Allows two way traffic – Avoids cultural misunderstandings and mistrust on both sides 11 RESPECT. BUILDING. PROGRESS.

First Nation Participation • Direct industry employment • Employment by band-owned enterprises • Employment by member-owned companies 12 RESPECT. BUILDING. PROGRESS.

ASCI Approach • First order of business is to find out availability of – Qualified tradesmen of a Nation – Non-qualified people looking for employment and training – Companies and services owned by Nation or Nation’s member • Create a skills inventory 13 RESPECT. BUILDING. PROGRESS.

Joint Venture Process • Starts with an informal conversation • Followed by an MOU or Relationship Agreement • Progress to a formal or informal joint venture 14 RESPECT. BUILDING. PROGRESS.

Relationship Agreement 15 RESPECT. BUILDING. PROGRESS.

Relationship Agreements • Mutual respect and recognition • Reciprocal consideration of common interest in all dealings • Commitment to an open and thorough process of planning and information sharing • Make sure staff resources are available • Establish a steering committee • Agreement remains in effect for 5 years or until replaced by a Joint Venture agreement 16 RESPECT. BUILDING. PROGRESS.

Nassituq Start • North Warning System (NWS) is a network of radars which look North to detect airborne threats • Started in 1987 when ATCO was awarded Operations and Maintenance contract • Integral component was to provide contracts and employment opportunities for northerners 17 RESPECT. BUILDING. PROGRESS.

Nassituq Joint Venture • In 1994, ATCO formed a joint venture with Pan Artic Inuit Logistics (PAIL) to create a 50/50 sharing of all aspects • PAIL consists of economic development corporations representing Inuvialut, Nanavut, Nunavik and Labrador • Inuit partners becoming more involved management and technical operations • Junior level training program • Senior technical development program • Appointment of PAIL officers as directors on Nassituq board and active role in governance and management 18 RESPECT. BUILDING. PROGRESS.

Nassituq Today • Company with $70 million of assets and 300 full time employees and 50-75 part time basis in summer • Inuit workforce represents 20% of total • Inuit training programs • Member of Canada Council for Aboriginal Business 19 RESPECT. BUILDING. PROGRESS.

Fort McKay First Nation 20 RESPECT. BUILDING. PROGRESS.

Fort McKay Joint Ventures • Creeburn Lake Lodge – 50/50 joint venture partnership with ATCO – Provides comforts of home to oil sands workers – 681 rooms • Barge Landing Lodge – 1,510 rooms practically across the road • Local entrepreneur is managing fleet of tractor/trailers to haul water and sewage • Significant benefit which allow the Nation to undertake many other business initiatives 21 RESPECT. BUILDING. PROGRESS.

UQSUQ • Joint Venture between ATCO and Nunavut Petroleum Corporation • Lease and operate a bulk fuel storage facility and pipeline distribution system at Iqualuit • Capacity of 79 million liters for airport and community • Workforce consists of 64% Inuit personnel • Boasts 100% local hiring, delivering real economic and social benefits to the community 22 RESPECT. BUILDING. PROGRESS.

George Gordon First Nation 23 RESPECT. BUILDING. PROGRESS.

George Gordon Joint Venture • A formal joint venture was negotiated with 3 First Nations in area • Approached BHP with proposal and received an award to design, build and operate 2,600 person workforce housing lodge • During construction, a number of contracts awarded to FN companies and partnerships • At completion, lodge will have 200 employees • ASCI has built a daycare center and general store for GGFN 24 RESPECT. BUILDING. PROGRESS.

Discovery Lodge • 160 square foot bedrooms with private washrooms, phone and internet • Includes a 1,200-person dining room and related facilities • Includes 20,000 foot sportsplex • Full size hockey arena to be constructed 25 RESPECT. BUILDING. PROGRESS.

ASCI Approach • Sign relationship agreements • Engage the community to determine needs over short and longer term • Build community projects • Engage the local workforce in projects • Train for operations and maintenance of facilities 26 RESPECT. BUILDING. PROGRESS.

Factors for Success • Inspired leadership • Determination to succeed • Separation of political structure from economic development • Good governance • Dependable partners • Willing to learn and work together • Applies to any successful enterprise, aboriginal or not 27 RESPECT. BUILDING. PROGRESS.

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Thank you for your time and attention ! Questions ? • Dan Rochon, CA dan.rochon@atcosc.com • Controller (403) 292-7799 29 RESPECT. BUILDING. PROGRESS.