YEC PUTTING PUBLIC MONEY AT RISK
In its haste to meet the federal government’s funding deadline for the Mayo B project, Yukon Energy is spending public money before it even has final environmental or regulatory approval for the megaproject, says NDP energy critic Steve Cardiff.
“I believe this is a classic case of putting the horse before the cart, because YEC is signing contracts with companies to build a project that has yet to be approved by the Yukon Environmental and Socio-economical Assessment Board or the Yukon Utilities Board,” Cardiff says. “To me, that is irresponsible, and I agree 100 per cent with the concerns raised by the Yukon Conservation Society in a letter it sent this week to the YUB.”
The letter says the YUB has yet to determine whether there are possible alternative ‘configurations for timing and structure’ of Mayo B and whether it is even prudent to build Mayo B at this time. Meanwhile, work is proceeding as if the project as proposed has received all approvals.
The YESAB has only just released its draft recommendations for public comment. However, the YEC has already entered into an $85.4-million contract with one company to expand the Mayo B hydro dam and an $11-million contract with another company to build a transmission line.
“I do not think it is in our best interests to risk public money based on premature assumptions the project, as currently conceived, will get the environmental or regulatory approvals it needs to go forward,” Cardiff adds. “I would urge the YEC to be more cautious and prudent."
Significant sums of public monies are at stake here, and if for some reason the project the YUB approves is different from what the YEC has proposed, the Yukon government could find itself in a difficult political and financial situation.
The Yukon Conservation Society’s letter to the YUB also notes that no energy project certificate has been issued by the YUB. This document is legally required before a project can be built. It goes on to ask the YUB to provide direction to all parties on how these facts affect the terms of reference for its upcoming hearing for the Mayo B project.
“I think the Yukon government needs to step in and tell the YEC to honor the process that’s in place to ensure energy developments are done in ways that are environmentally and financially responsible, just like any other proposed industrial development,” concludes Cardiff. “I am also very concerned the YEC is functioning without a full board to provide proper public oversight.”