Thank you, Mr. Chairman. Good afternoon. I’m here with the Honourable Michael Miltenberger to discuss the 2011-2012 Capital Estimates of the Government of the Northwest Territories.

As lead Minister for infrastructure, I was tasked with revising the Government of the Northwest Territories capital planning process, with the aim of improving how we plan for, acquire, deliver and maintain infrastructure necessary to deliver required programs and services for our residents.

The changes we have implemented as a result ensure that all major projects are properly planned and costs are accurately estimated prior to seeking approval from this Assembly. This improved process, including the consideration of the capital budget in the fall rather than the late winter, has not only enabled us to increase our own investment in

critical assets but has also allowed our government to take advantage of both new and accelerated federal infrastructure funding. The results of this improvement are reflected in the 2009-2010 and the 2010-2011 capital budgets. These budgets represent a combined investment in excess of $700 million, including an unprecedented $485 million in 2009-2010. Community governments also saw investment of $127.5 million over this period.

These changes have improved the delivery of large capital projects; for example, the Department of Public Works and Services managed $162 million in capital projects in 2009-2010 and is currently managing $149 million in 2010-2011. Major contracts have been awarded on over 95 percent of these projects and work is being successfully completed within the approved budget.

One of the major changes to the capital planning process was to make deferred maintenance a priority for investment. Since the inception of the Deferred Maintenance Program on April 1, 2008, significant progress has been made to reduce our deferred maintenance deficit and keep critical building assets operational. Through a combination of large capital projects, complemented by our Deferred Maintenance Program, we will have reduced our deferred maintenance deficit by approximately $145 million by March 31, 2012. Diligent management of our government’s deferred maintenance deficit will continue to be a priority for many years to come. The 16th Legislative Assembly

can take credit for recognizing this significant problem and developing a vigorous and sustainable plan to address this issue.

While proper project planning and managing our deferred maintenance deficit are priorities, our government is also mindful that we need to be innovative and look for ways to reduce the energy consumption of our buildings and minimize their impact on the environment.

Through the delivery of our infrastructure programs the GNWT is demonstrating its commitment to responsible energy management and environmental stewardship.

I would like to highlight two building projects that will be completed within the next few months that highlight how our new process is working to provide focus on energy and the environment.

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The new data centre in Yellowknife, currently nearing the end of construction, has no heating plant. The facility will obtain its required heating from the computer equipment hosted in the building. Excess heat from the new data centre will be shipped to the GNWT central warehouse next door and help reduce this building’s fossil fuel requirements and in turn reduce greenhouse gas emissions.

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The new GNWT office building in Inuvik will obtain its heating requirements from the Northwest Territories Power Corporation power plant that is located directly across from our new building. Waste heat from the power plant will be shipped to the office building via a short pipeline and should eliminate the requirement to heat this building with natural gas.

In conclusion, I would like to say that despite the challenges we still face, much progress has been made to improve how we plan for, acquire, deliver and maintain our infrastructure. A more rigorous planning process has produced solid projects. We have eliminated the need to return to the Assembly to seek additional funds for those projects that were developed through planning studies. We have significantly reduced and will continue to reduce our deferred maintenance deficit and we have demonstrated an ability to think outside the box and seek opportunities, where appropriate, to develop innovative projects that reduce our reliance on fossil fuels. Many energy efficiency initiatives are underway, including the adoption and use of biomass fuels.

I look forward to discussing the 2011-2012 Infrastructure Acquisition Plan with the Assembly so we can continue the good work we started three years ago when we first gathered here as the 16th Legislative Assembly.