{"id":453096,"date":"2026-02-04T10:33:39","date_gmt":"2026-02-04T10:33:39","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/453096\/"},"modified":"2026-02-04T10:33:39","modified_gmt":"2026-02-04T10:33:39","slug":"this-is-huge-for-inuvik-and-huge-for-yellowknife","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/453096\/","title":{"rendered":"\u2018This is huge for Inuvik and huge for Yellowknife\u2019"},"content":{"rendered":"

On January 28, in a corner of the internet, a notice appeared that sets in motion billions of dollars of spending in two Northwest Territories communities.<\/p>\n

The notice<\/a> advises contractors that later this year, procurement begins for work in Yellowknife and Inuvik associated with upgrading their military installations.<\/p>\n

Last year, Ottawa announced the two communities would become northern operational support hubs<\/a>, a step up from their current status as forward operating locations.<\/p>\n

\"AA CH-146 Griffon helicopter lands at Yellowknife Airport during the city\u2019s 2023 wildfire crisis. Alana Morin\/Canadian Armed Forces<\/p>\n

Last week\u2019s notice begins to turn that promise into reality.<\/p>\n

The estimated total contract value \u201cmay exceed $5B for each location,\u201d the notice states, listing tasks ahead like:<\/p>\n

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airfield improvements, including new or repurposed hangars;<\/p>\n

ammunition compounds and fuel facilities; and<\/p>\n

\u201cmulti-purpose facilities,\u201d accommodation and warehouses.<\/p>\n

\u201cIt\u2019s a big deal. It\u2019s a big responsibility now for Yellowknife and northerners, for us to meet the moment,\u201d said Mayor of Yellowknife Ben Hendriksen on Friday, two days after the notice came out.<\/p>\n

For him, \u201cseeing something tangible\u201d started to bring home what this level of investment could mean for the NWT\u2019s capital.<\/p>\n

The $5-billion figure in the notice is extremely preliminary. Assigning a contract of that value doesn\u2019t mean Yellowknifers or northerners will see all or even most of it. The Department of National Defence, approached for comment, did not immediately provide a more detailed breakdown of where that figure came from.<\/p>\n

Even so, to place these two projects and that associated $10-billion sum in context, the NWT government\u2019s annual spending is just over $2.5 billion. The Diavik diamond mine, a bedrock of the territory\u2019s economy for more than two decades, says it has spent between $7 billion and $8 billion in the North since 2000.<\/p>\n

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\u201cThe city and city council have been preparing for a moment like this for quite some time,\u201d said Hendriksen.<\/p>\n

\"BenBen Hendriksen. Ollie Williams\/Cabin Radio<\/p>\n

He pointed to a December 2024 motion pressing the federal government to \u201clook to the North and look to Yellowknife to invest,\u201d and an agreement signed with Inuvik<\/a> to work together in attracting this kind of cash.<\/p>\n

\u201cIt\u2019s an exciting opportunity for Yellowknifers and northerners to see at a time when there\u2019s not a host of great news on the economic front,\u201d he added. The NWT\u2019s diamond mines are closing \u2013 Diavik ceases operations in March \u2013 and the general atmosphere in the territory is one of economic worry<\/a>, despite the knowledge that some big military spending is on the way.<\/p>\n

\u201cThis is $5 billion \u2013 potential, at the moment \u2013 in terms of federal government spend. That creates spin-off requirements, spin-off jobs, spin-off investments,\u201d said Hendriksen.<\/p>\n

\u201cPeople will see us as a place to start families, start to invest, create new businesses themselves. We need to look at this not as something to just fill a gap. It\u2019s creating new opportunity for the North and for Yellowknife.\u201d<\/p>\n

\u2018Akin to somebody opening a mine\u2019<\/p>\n

Inuvik has spent years trying to recapture the mood of its oil and gas boom that unfolded in the 1970s and early 1980s.<\/p>\n

By the late 1980s, that boom had ended. The town\u2019s military base closed in 1986 (though a small presence remained), at the time a marker of Inuvik\u2019s entry into economic decline.<\/p>\n

Now, Mayor Peter Clarkson is watching as the military\u2019s return promises to reignite his town\u2019s prospects.<\/p>\n

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\u201cIt\u2019s huge for Inuvik. I think it\u2019s huge for Yellowknife,\u201d Clarkson told Cabin Radio.<\/p>\n

\u201cThey do say in the information we\u2019ve received that this will be over the next 20 years. So some of it will come right away and some will be longer.<\/p>\n

\u201cThis latest notice on procurement is basically a heads-up to say, \u2018OK, if you\u2019re going to be interested in DND procurement, make sure you have all the clearances in place.\u2019 \u2026 To wake up the contracting world that DND will be moving forward in the next few years.\u201d<\/p>\n

\"PeterPeter Clarkson, mayor of Inuvik. Tony Devlin\/Arctic Development Expo<\/p>\n

Clarkson has been doing the math. If the federal spend in Inuvik comes in at even a fraction of the $5 billion in the procurement notice, the consequences would be significant at the town hall.<\/p>\n

\u201cIf DND did $1 billion-worth of infrastructure in Inuvik \u2013 within the municipal boundaries, at the airport \u2013 that equates to $20 million in grant in lieu of taxes,\u201d he said. (The federal government is legally exempt from paying property taxes but makes grants in lieu of taxes across the country to ensure it shares local costs.) <\/p>\n

\u201cOur current annual budget for capital and operating is about $20 million a year,\u201d Clarkson continued, joining the dots.<\/p>\n

\u201cThis is akin to somebody opening a mine or several large facilities within municipal boundaries. <\/p>\n

\u201cThere are some longer-term benefits to the municipal government. I mean, there\u2019s going to be additional work \u2013 you\u2019ve got water and sewer to deal with, you\u2019ve got roads to deal with \u2013 but there are additional benefits that will help with the operations of the community.\u201d<\/p>\n

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Premier looks forward to \u2018major construction\u2019<\/p>\n

DND told Cabin Radio it may have more information to provide later this week that addresses specific questions about its plans, like commitments to northern spending.<\/p>\n

A timeline for the work<\/a> is already public. <\/p>\n

In late 2024, Ottawa said it wanted to reach \u201cinitial operational capability\u201d in the two communities by 2034 and full operations by 2039. Calls for speedier investment in Arctic sovereignty have only grown since then, and it\u2019s not clear whether those timelines have since been moved up.<\/p>\n

Hendriksen and Clarkson each said they had little detail about the dollar values associated with the various aspects of the work, but both are in talks with DND over things like infrastructure that can be used by the community as well as DND.<\/p>\n

\u201cThings like a shared heated garage, heated storage and cold storage,\u201d said Clarkson, \u201cthat DND would be able to use but also that the Rangers, Coast Guard Auxiliary and ground search and rescue would be able to operate out of \u2013 instead of, you know, someone\u2019s backyard.\u201d<\/p>\n

\"AA Chinook helicopter during an Operation Nanook military training exercise in March 2021. Meaghan Brackenbury\/Cabin Radio<\/p>\n

\u201cThat\u2019s one of the things we\u2019ve been messaging to the federal government,\u201d said Hendriksen regarding the detail of DND\u2019s plans. <\/p>\n

\u201cIt\u2019s important that they come and work with the communities and speak with the communities, and talk about those specifics as much as they can, when they can.<\/p>\n

\u201cWe\u2019ll be continuing to ask them to come and do those types of conversations as well within the community, because I think it can help us understand what\u2019s coming and what that means \u2013 from a housing side, from an infrastructure need.\u201d<\/p>\n

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In a statement, a DND spokesperson wrote: \u201cThe planning process is underway to ensure that this infrastructure will meet NORAD and broader Canadian Armed Forces military requirements, and we will consider multi-purpose opportunities where practical through engagement with Indigenous and Northern governments and partners.\u201d<\/p>\n

NWT Premier RJ Simpson called the appearance of the procurement notice \u201cthe first time figures of this scale have been referenced publicly.\u201d<\/p>\n

\u201cI am confident that investment at this level will mean major construction over several years, creating lasting economic opportunities in the territory,\u201d he told Cabin Radio in a written statement.<\/p>\n

\u201cFor years now, we have been clear that strengthening Arctic security starts with investing in basic northern infrastructure, including in hub airports like Inuvik and Yellowknife.\u201d<\/p>\n

Asked if he had received any guarantees to ringfence some of the billions of dollars for northern firms, Simpson said he had \u201calways advocated to federal partners that reconciliation must be a priority in all that we do, and that such commitments need to be upheld in visible, tangible ways.\u201d<\/p>\n

\u201cI hope that these investments will reflect northern realities,\u201d he stated.<\/p>\n

\u201cThe businesses and residents of the NWT are ready to take this opportunity to step up, build our economy, and contribute directly to Canada\u2019s Arctic security. After all, a strong Canada depends on a strong North.\u201d<\/p>\n

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