Thank you, Mr. Chairman. The payment is really a marker to give us a negotiating mandate to how we’re going to structure the actual corporation that’s going to manage the Fibre Link Project for us. As I noted before, the first payment is going to be towards the capex of the project, so the first is a $7 million contribution to whomever the entity is that manages the project towards the capital costs and then the ongoing payment of $7 million to offset the debt servicing costs. As the Minister alluded to before, in the early days there are not sufficient revenues to generate sufficient cash to pay down the debt so the GNWT is assuming that risk, and the $7 million is to help offset that risk. Going forward, as the Inuvik satellite facility grows, the amount of that payment should decline as well. The amount of the payments also will depend on how we structure the ownership of the corporation.
Mr. Kalgutkar on Consideration in Committee of the Whole on Bills and Other Matters
In the Legislative Assembly on March 7th, 2013. See this statement in context.
Consideration in Committee of the Whole on Bills and Other Matters
Consideration in Committee of the Whole of Bills and Other Matters
March 6th, 2013
Kalgutkar
See context to find out what was said next.