NWTPC's long-term debts shared with Nunavut need to be settled. Although Nunavut funds their portion of the debt service, the debt principal is nonetheless carried on our books and restricts our borrowing capacity. Committee members stated that if we divide the assets of the NWTPC with Nunavut, then we must divide the debt too.
Our debt limit or maximum borrowing limit is $300,000,000 as per the NWT Act. Most of this debt is for NWTPC. There is some program debt, but the NWTPC debt accounts for the largest portion of our total debt. If the Nunavut portion is transferred, this will increase our borrowing capacity. At the very least, it will move us away from the debt wall. Our territorial government's guarantees for the NWT Power Corporation accounts for $124,458,000 of our total debt for the upcoming 2001-2002 fiscal year. Our total net debt is expected to be $250,815,000 and our available borrowing capacity will be $49,185,000.