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FAQs
Is Project Reconciliation a Canadian government initiative?
Project Reconciliation is NOT a government of Canada initiative.
Project Reconciliation, ISWF and RETI are fully private entities.
Project Reconciliation was created by Indigenous people for Indigenous people.
With the world moving away from fossil fuels, why would Indigenous communities want to own Trans Mountain Corporation or the Expansion Project? Is this a smart investment?
The expansion project is supported by 20-year commitments from the shippers (companies who are moving their oil through the pipeline) which allows for the financing and repayment of $15.3B and still provide revenue to the Indigenous communities.
There is also a need for oil and gas beyond fossil fuels to continue to produce high-quality plastics through the petrochemical industry for our vehicles, technology, medical equipment, etc.
As well, the revenue generated from the ownership of this asset will continue to grow through the Indigenous Sovereign Wealth Fund2 (ISWF2) and provide funding for net zero energy transition projects.
Summary of Indigenous Economic Participation
An inclusive framework to move towards Indigenous economic sovereignty.
Project Reconciliation is facilitating the 100% Indigenous-owned acquisition of Trans Mountain Corporation, in its entirety, including the Trans Mountain pipeline – at no equity requirement or liability for Indigenous communities.
Allocation Model
Project Reconciliation’s proposal is open to participation from all 129 Indigenous groups impacted by the TMX pipeline and marine shipping routes.
The proposal also recognizes the varying impacts on individual communities, including those that are located closest to TMX. These varying impacts are reflected in different share classes that are available to Indigenous groups participating through equity, with share classes initially allocated according to (1) proximity to the pipeline, (2) population and (3) base leveler.
Governance & Communications Process
Project Reconciliation is governance ready
Project Reconciliation’s proposed Limited Partnership (LP) structure would eliminate financial liability to Indigenous community partners, including exposure to operational risks (catastrophic failure, spills, leakages).
The Board of Directors, approved by Indigenous Unit Holders, will be responsible for managing the business and affairs of Trans Mountain Corporation in the best interests of the Indigenous communities they represent. This nomination and approval process ensures the right balance between required skills and unit holder representation on the TMC board.
Environmental Stewardship and Indigenous Knowledge
Environmental stewardship is an important component of Project Reconciliation’s overall proposal which includes using revenues from TMC to invest in clean energy and renewable technologies projects via the low carbon Indigenous Sovereign Wealth Fund (ISWF2).
The Board of Directors, collectively elected by participating Indigenous groups, would have oversight over standards and environmental protections.