Mr. Speaker, I have a return to written question 2-18(3) asked by the Member for Yellowknife Centre on October 20, 2017 to the Minister responsible for the Northwest Territories Housing Corporation regarding the Northwest Territories Housing Corporation module units constructed. Thank you, Mr. Speaker.

In terms of modular versus stick-built construction, experience has shown that costs can be comparable in more northern communities due to shipping and transportation costs. Where a community can be accessed through the road system, savings are expected from a modular approach.

The original calculation of construction cost savings did include the payment of a cash advance to Concept Energy Services Ltd.

The amount of the advance was $1.34 million and was supported by the signed legal agreement requiring partial recoveries from subsequent progress draw payments as the work being completed. This advance has now been fully recovered from Concept Energy Services Ltd.

The NWT Housing Corporation provided Concept Energy Services Ltd. with the advance in order to assist with upfront material purchases.

This is consistent with practices in the modular home industry, where upfront capital is required. This advance was provided in accordance with Section 99 of the Financial Administration Act.

Thank you, Mr. Speaker.