Alberta Indigenous Opportunities Corporation Empowering Indigenous communities to be full partners in prosperity. Matthew Machielse, Interim CEO February 2020
Mandate
The AIOC facilitates investment by Indigenous groups in natural resource projects and related infrastructure, subject to the regulations.
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Background & Implications • Indigenous communities have strong interest in ownership and up-front participation in large-scale resource projects. • Indigenous economic development through equity participation in viable resource projects will increase.
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Why is the AIOC needed? The Barriers The ability of Indigenous groups to provide adequate security to financial lenders is a significant barrier in their ability to access capital. Capacity to develop or invest in natural resource projects varies widely across Indigenous communities.
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The Initiative The proposed initiative bridges the gap between Indigenous groups wanting to be commercial partners in the natural resource sector, and their limited financial capacity. The AIOC’s $1 billion fund is designed to reduce the cost of capital for Indigenous groups, and support their ability to raise capital to invest in resource projects. AIOC grant or partial grant offerings provide access to third party advice that contributes to increasing capacity in Indigenous groups.
The Results Indigenous communities can benefit and reinvest the returns from their financial participation in major resource projects in their communities. Indigenous communities develop their capacity to be involved in significant projects and investments. Job creation and economic growth is expanded.
“The time has come to move beyond symbolic gestures to real, practical measures for Indigenous people to benefit from the resources that lie beneath the lands they first inhabited.
We want to empower Indigenous communities so they can lift their people out of poverty and become full partners in prosperity.” - Premier Jason Kenney
AIOC – Investment Program Includes Projects Throughout Canada
Investment support may be for Indigenous groups and resource projects throughout Canada. The investment must meet the mandate of the AIOC, be commercially viable, and earn a return on investment for Indigenous Peoples and Alberta as well as support the responsible development of Alberta’s resources.
Focused on Resource Projects
The AIOC’s investments will be in energy (including oil and gas, renewable energy, electricity, and coal), mining, and, forestry sectors.
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Medium to Large Projects
A $20 million minimum threshold for Indigenous investment in the project helps ensure the AIOC support will generate a significant impact for Indigenous Peoples. Indigenous communities can form partnerships with other Indigenous communities across Canada to
Capacity Support
To support deal development, the AIOC will provide access to technical support on major project opportunities. This capacity support will include practical legal and economic backing through the entire deal life-cycle to Indigenous communities.
Initial Proponent Interest in AIOC Support
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Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9 Project 10 Project 11 Project 12 Project 13 Project 14 Project 15 Project 16 Project 17 Project 18 Project Average
Total Project Size
Potential Indigenous Investment
Sub-sector
$21 billion $26 million $16 billion $44 billion $86 million $2 billion $10 billion TBD $76.5 million $36 million TBD TBD $100 million TBD TBD $13.8 billion $55 million $300 million $6.3 billion
TBD TBD TBD TBD TBD TBD $20 million - $80 million TBD $38.35 million $36 million TBD TBD $100 million TBD TBD $4.5 billion TBD TBD $309 million
Transportation (rail) Petrochemical Pipeline Pipeline Biomass facility Petrochemical Forestry Light oil development Facility – Downstream Pipeline Facility – Downstream Facility - Downstream Facility – Power Upgrader Shipping Pipeline Upgrader Biomass power generation
Responsible investments • The investment environment is changing. • Investors and shareholders in companies are increasingly factoring in environmental, social, and governance factors in their decisionmaking. • As evidenced by the AIOC, Alberta is embracing this transition to attract more investments, create jobs, and drive economic growth. 8
Questions?