That's what governments do. Governments build schools, they build hospitals, they build roads. We don't always ask what's in it for us in terms of profit.
These are public infrastructure and governments are supposed to do that.
Mr. Speaker, for anybody to say that we are sort of putting this in the front of the queue at the expense of another, has not done enough research. Mr. Speaker, people out there expect us to act on some of the things. This has been on the books for eight years. I will submit to you, Mr. Speaker, this is one of the rare projects that actually went through a legislative review process. That hasn't been done for any school infrastructure or courthouse; that's not a normal process. This was a huge item. This was a decision made by the government eight years ago that we would do this. This has been worked on ever since and it's about time that we get off our butts and make some decisions.
Mr. Speaker, when this discussion has been going on, I know communities are divided, there's not unanimous support, but I could tell you many people are saying build that bridge. Mr. Speaker, some people ask what is the urgency. Mr. Speaker, if you go to the Department of Indian Affairs' website, there is a little article about the Deh Cho project and you'll learn from that, I mean I'm sure it's everywhere too and I've mentioned this before, the highway from the NWT border to Yellowknife started in 1968. It took 40 years to build. Forty years ago if somebody said we're going to build this highway and it's going to cost $540 million in 2007 dollars, everybody would have said take a hike, that is too expensive, let's study this thing to death, let's see if we can afford it. Mr. Speaker, that's exactly what we're doing. In 1975, the estimate for the bridge was $25 million. At the $150 million estimated, that is quite reasonable 30 years later.
So I know I can appreciate some Members in this House that are worried that $150 million going into the Deh Cho Bridge over North Slave is going to somehow take away money for their projects. I have to tell you -- and I wish the government would do a better job of explaining that -- that is not what is going to happen. We're not taking away $150 million from the government capital budget and plunking it on the North Slave for the benefit of Yellowknife. That is not what is happening. We don't have that money in the capital budget. What is happening is we have a 3P project, it's a great agreement, we have equity partners who are going to do the financing and the government is going to spend the money they normally spend anyway on ferry delivery and associated costs.
Mr. Speaker, I will give you the details, Mr. Speaker, for those who are out there who are being fed misinformation and fear about this Deh Cho project, Mr. Speaker, the Deh Cho Bridge Corporation will raise sufficient equity and debt financing to design, finance and construct the bridge to agreed upon standards. The Government of the Northwest Territories and Deh Cho Bridge Corporation will enter into an agreement for a 35-year concession period, during which the DBC will own, operate and maintain the bridge. During this period, the GNWT will pay a contribution from ongoing ferry ice bridge savings approximately $1.5 million annually, but it's inflating. The GNWT will also collect and pay a toll on commercial vehicles crossing the bridge, approximately $3 million annually, increasing with traffic and inflation. Mr. Speaker, total revenue, which was estimated a few years back to be about $4.5 million in year one, will be used to service and reduce the debt, operate and maintain the bridge and provide a return on shareholders' equity. Annual costs will include the debt servicing, interest and principal of approximately $3 million, and operations and maintenance of approximately half a million for a total year one cost of approximately $3.5 million. The key word here is inflation and let's talk about inflation and that's where the urgency comes from.
Mr. Speaker, eight years ago when this bridge was an idea and it was estimated at about $30 million, no one in Yellowknife could have envisioned that we would look at a real estate guide for $500,000 and not blink. Eight years ago we could have never imagined that. In eight years, Mr. Speaker, the prices in Yellowknife and North Slave have at least doubled if not went up by at least twice. So of course there's inflationary pressure on this project. For any Members to suggest that we need to revisit this whole thing because the cost of living went up by 100 percent, I don't understand that. The nature of the project has not changed and I'm trying to tell you that this Assembly had gone through a thorough review. I do support that this government has to do a better job of explaining to the people the content of this project, but to say that because the cost of building this project and financing this project has gone up a little that it changes the nature of the project is wrong.
Mr. Speaker, I have a problem with this motion because that's what it does. It makes it sound like we're sort of hoodwinking a project under the knowledge of the people. That's not the case, Mr. Speaker. When you're doing a cost and benefits analysis, the motion suggests we've got to look at the cost benefit analysis that suggests that this bridge will somehow increase the cost of living for people in Yellowknife. I want to tell you, once again, when I was a member of GED, we did public hearings through the Territories and in Yellowknife about Deh Cho Bridge Corporation and people have said, and the trucking associations or the Co-op, all the grocers, they have told us that having no bridge over the Mackenzie River is increasing the costs of doing business in the North. I'm telling you eight years later, and the cost of living has gone up in every other way, the cost of not having the bridge is very, very high. I support the bridge 1,000 percent because I believe...
---Applause
...I believe in my heart that this bridge will reduce the cost of living for Yellowknifers and put everybody who lives in the North, and let me say when you go to Wal-Mart I see more people from outside communities and, may I add, Mr. Speaker, that it will reduce the cost of living for everybody in the Northwest Territories.
