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GMRP City of Yellowknife Socio-Economic Strategy

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Presentation on theme: "GMRP City of Yellowknife Socio-Economic Strategy"— Presentation transcript:

1 GMRP City of Yellowknife Socio-Economic Strategy
October 23, 2017

2 Drivers for Developing a GMRP Socio-Economic (S-E) Strategy
Stakeholders Key issue for local and Aboriginal stakeholders Strong interest in S-E benefits in EA process Commitments Government policies and Land Claims GMRP policies and commitments Efficiency Southern workers add ~13% to the cost of labour AOC* drives S-E benefits while remaining a non-critical factor in awarding contracts A strong AOC component is associated with high overall contract scores *Aboriginal Opportunity Considerations (AOCs) are point-rated contract criteria that include factors like Aboriginal training, employment and sub-contracting.

3 Key Findings: GMRP and the External Context
Important context for GMRP’s socio-economic impacts and benefits Canada NWT Diamond Mines Aboriginal Communities Yellowknife Federal departments and agencies (e.g. ESDC, HC, CanNor) involved in a range of social and economic development initiatives Economic conditions across the country (e.g oil sands in AB) influence availability and movement of workers Taking national/provincial socio-economic trends into account and coordinating with federal partners Issues: post-diamond mine economy, maintaining population Responsibilities include community wellness programs, training and education Economic Opportunities Strategy Partnering in training, education, and community wellness Precedent of over 10 years of Northern and Aboriginal jobs and procurement, engagement, and community development support ($$) Safety record Decline post-2020 Meeting the expectations set by the diamond mines Capacity to plan for, manage participation in, and benefit from local projects Legacy issues and distrust Building a positive legacy for the project: jobs and restoration of the land Centre for mining and construction business Housing challenges Mining town vs government city and expectations regarding development Smart Growth Plan Integrating workers into the city – permanent residents and no work camps Our external assessment looked at socio-economic conditions in Yellowknife and in NWT more broadly, some of the key actors in shaping these conditions, and implications for the GMRP. This slide provides a snapshot of some of the issues related to industry (namely the diamond mines), First Nations, the City of Yellowknife, and NWT. Key context for the socio-economic strategy of the GMRP is the diamond mines. They define the recent economic success of the territory and the state of the art around the management of socio-economic impacts and benefits (as well as environmental) in NWT – not to say there aren’t challenges. They set a certain bar in terms of the proportion of jobs and the types of jobs available to Northerners, safety performance, community development initiatives, and training and education partnerships with government and others There are concerns about the future FNs – history of impacts and distrust City – NWT – partner in opportunities and impacts. Employment Initial predicted total mine employment was 1,826 workers In 2013, total diamond mine employment was 3,109 workers Northern employment in 2013 was 1,430, exceeding initial predictions of 1,138 by 26% Of the 1,430 northern workforce in 2013, 752 or 53% were Aboriginal Total employment since 1996 is just under 44,000 person-years of which 50% is northern, and half of the northern is Aboriginal Training and education investment The diamond mines and other industry partners supported Mine Training Society programs with $16.7 million in cash and in-kind investments between 2004 and 2014 The Mine Training Society assessed 2,796 people for training between 2004 and 2014, with 2,149 of those receiving training or other support In 2013, the three mines employed 69 apprentices Nearly $464,000 in scholarships was awarded by the three mines in 2013 Business spending Mines spent $943 million in 2013, with $621 million (66%) with northern businesses, and $248 million (26%) with Aboriginal business Total spending to date to construct and operate the mines is $14.8 billion Northern business spending to date is $10.6 billion (72%) of which $4.8 billion (32%) is with Aboriginal businesses Community contributions During 2012 and 2013, the three diamond mines provided approximately $23 million in contributions to communities Safety The diamond mines continue to set high standards for mine safety and their strong safety performance has made significant impacts on the safety culture not only within their organizations but also with many other businesses involved in their operations. National Regional Local GMRPcio-Economic Strategy

4 Key Barriers to Achieving Socio-Economic Benefits
1. Insufficient Northern and Aboriginal workforce capacity A. Insufficient supply of Northern and Aboriginal workers B. Lack of training, education, and experience in skills areas required by the GMRP C. Recruitment and retention challenges 2. Insufficient Northern and Aboriginal business Capacity A. Number and type of businesses 3. Socio-economic Impacts risk offsetting GMRP benefits A. Vulnerability / resilience of affected communities (existing socio-economic challenges, social services and support capacity) B. Infrastructure capacity (housing, roads, water, electricity) POTENTIAL STRATEGIES TO ADDRESS BARRIERS Insufficient supply of Northern and Aboriginal workers Monitor projected regional labour demand Consider scheduling options for work packages that ‘normalize’ the labour demand Communicate project schedule and associated job opportunities and facilitate a smooth transition for workers from elsewhere Coordinate with immigration programs aimed at attracting skilled immigrants Lack of training, education, and experience in skills areas required by the GMRP Engage early (communicate project requirements and training needs) and partner with education and training organizations and initiatives Recruitment and Retention Challenges Consider best practices from diamond mine and other projects to provide support and a positive workplace for Aboriginal workers Identify and engage key internal stakeholders (e.g. engagement, acquisitions, project planning and management; all GMRP employees) Develop plan for engaging and communicating throughout project Position GMRP as an attractive place to work Insufficient Northern and Aboriginal Business/ Contracting Capacity Maximize engagement with northern and Aboriginal business community ahead of formal procurement processes Establish a physical (storefront) office and/or a dedicated business development manager Monitor regional business capacity Provide incentives for contractor(s) to build capacity of local sub-contractors Partner or facilitate connections with business capacity-building programs Vulnerability / resilience of affected communities Engage YKDFN on their community readiness results and lessons learned from other projects Identify best practices from diamond mines and other projects to support Aboriginal workers and their families Consider scheduling options for work packages that ‘normalize’ the labour demand and minimize associated community risks.

5 GMRP Procurement Objectives
Procurement activity is conducted in a manner that is compliant with Government of Canada (GOC) Contracting Policy and processes, that is transparent and accountable, Meets the principle of Best Value to the Crown; National and International Trade Agreements; Comprehensive Land Claim Agreements; Aboriginal/local socio-economic objectives. Promote, incorporate, and where possible maximize social and economic opportunities for Aboriginal and Northern community, business, and individual participation, through Giant’s procurement strategies and mechanisms. ***GOC Tools= Aboriginal Opportunities Considerations (AOC) and Procurement Set Aside for Aboriginal Business (PSAB)

6 Main Construction Management
The Remediation of the Giant Mine site will be carried out through a Main Construction Manager Contract (MCM). The total value for this work is estimated at approximately $600M. The MCM will manage the entire remediation of the Site and tender subcontracts accordingly for remediation work, which is estimated to begin in 2020.

7 Schedule MCM Posted January 2017
RFP Phase 1 prequalification tender early 2017 RFP Phase 2 tender summer 2017 Target MCM award authority December 2017 MCM orientation period early 2018

8 CM Contract Term 1 (2017-2022) Term 2 (2022~2030) Advisory
Small core team to advise/manage and all work is tendered in packages to subcontractors. Term 1 ( ) Advisory Site Control/Mine Manager Risk mitigation and remediation planning Term 2 (2022~2030) General Contractor Implementation of Remediation Project (each work package to include AOC criteria)

9 Core Team Mine Manager Senior Project Manager General Superintendent
Environmental Manager Health and Safety Manager Security Manager Community Economic Development Office

10 Community Economic Development Officer
Assist with developing Socio-Economic Strategy Responsible for facilitating, promoting and ensuring community and eco development Responsible for developing and overseeing implementation of Aboriginal Benefits Plan Manages and coordinates the Labour Capacity Studies Develop Economic profiles of Region and Communities via Capacity Assessment Collaborates with MCM Team and Giant to determine work packages and adjusting AOC criteria to best align with labour capacity Based in MCM Yellowknife Office Collaborates with respective organizations to provide outreach to local, indigenous and northern residents to discuss work and training opportunities.

11 Overall accountability for Project
INAC Contracting authority and oversight of Construction Manager PSPC PSPC Contract Authority Manages execution of work; earns a % of every contract tendered Construction Manager Term 1 Prime Contractor and Mine Manager (Health and Safety) Care and Maintenance –U/G, Water Treatment, etc. Monitoring –Regulatory Compliance, Air, Medical Advisory services during design: Constructability Structure of work packages Construction schedule Cost estimate Socio-economic activities Risk mitigation activities Site preparation activities Term 2 Implementation Tendering and delivering work packages Prime Contractor and Mine Manager Care and Maintenance Monitoring: Regulatory compliance Air quality Medical Ongoing Industry Capacity Assessments Core Team 1)Mine Manager 2) Senior Project Manager 3) General Superintendent 4) Underground Superintendent 5) Environmental Manager 6) Health and Safety Manager 7) Security Manager 8) Medical Manager 9) Aboriginal and Community Engagement Liaison Sub Contracts Sub Contracts Sub Contracts Sub Contracts Sub Contracts Majority of Aboriginal Opportunities exist in sub-contracts

12 Project Timeline and Jobs Created
Peak of Remediation Activity Under the current regulatory scenario, securing a Water License in 2020 will lead to a peak of activity and labour intensive work from Over the next 20 years, GMRP has the opportunity to employ hundreds of Northern and Aboriginal employees and provide hundreds of millions in local contracts – potentially helping to offset diamond mine closures Current studies estimate need for up to 350 employees in the 3 peak years of remediation ( ), which is equivalent to approximately 35% of the current Diavik or Ekati workforce Anticipated Types and Numbers of Positions for Northerners and Aboriginals

13 Labour Study Outcomes- Existing Skills
There is Northern Aboriginal capacity for entry-level and semi-skilled occupational needs Some skilled occupational needs (e.g. trades, technicians, blasting drilling, and environmental monitoring) There is potential local labour supply for some skilled occupational needs (e.g. trades, technicians, supervisors, underground miner) Limited or no local labour supply for skilled and professional occupational needs

14 Next Steps Next Steps The 2016 Labour Study is currently being revised. Build on federal, territorial and municipal programs. Potentially form a working group to identify and align Northern opportunities with interested departments. Look for opportunities to maximize Northern opportunities through new initiatives. Play a coordination role with partners and delivery agents in moving forward on capacity building. Capacity Building Programs An assessment of the various capacity building programs in the NWT has been undertaken: Education and Employment Supports Skills and Post-secondary Education Recruitment and Retention Programs An analysis was carried out to determine the relevance of the GMRP to those various programs, and how might GMRP and/or the MCM engage with them. The following should be considered in order to move forward on capacity building: Coordination Timing Partners Demand


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