Thank you, Mr. Speaker. I am very pleased to report to the House today on a positive approach we are taking to improve the flexibility and the economy of fuel resupply in the Keewatin region. I say we because this improvement is a direct result of the partnership between MLAs and Ministers working together on Keewatin resupply.
The infrastructure in several Keewatin communities was designed only for barge deliveries of the annual fuel resupply. This restricted our ability to look for the most cost-effective fuel and delivery. I am announcing today that Public Works and Services will be issuing a request for proposals in November for the private sector to construct fuel delivery pipelines in Chesterfield Inlet, Coral Harbour, Arviat and Rankin Inlet. Consultation with the affected communities is still under way, so that we can decide on the right locations for the pipelines.
When the construction is completed, the government will lease back the pipelines for a five-year period, at which point they will be owned outright by the Nunavut government.
Mr. Speaker, there are great savings to be made from direct fuel tanker delivery rather than barges. We project savings of $65 million to $100 million over the 20-year useful life of the pipelines. These savings are more than enough to fund the lease costs of the new pipelines.
Following the issuing of the proposal call for fuel pipeline, Public Works and Services will be issuing another proposal call for petroleum products resupply for the entire eastern Arctic to replace the current contracts with NTCL, which expires at the end of the 1998 resupply season. As part of that request for proposals, companies will be asked to bid on the supply of dry cargo for the Keewatin region. By assuring this coordinated proposal call, Mr. Speaker, for both petroleum products and dry cargo, we will continue the current linkages between the two types of cargo to make resupply economical for all.
The residents of the Keewatin can look forward to some savings during the period when the new pipelines are being paid for. However, they will see a significant reduction in fuel prices after the five-year buy back period, and this should have a major impact on the Keewatin standard of living.
I think that all Members of the Assembly can be very proud of this achievement of the Keewatin Resupply Committee. It shows what we can do when we work together.
Thank you, Mr. Speaker.
--Applause