CIB loans $139.5M to BC Hydro for North Coast Transmission Line early works

The Canada Infrastructure Bank (CIB) has reached financial close on a $139.5 million loan to BC Hydro to support the early works phase of the North Coast Transmission Line (NCTL) project.

The early works include pre-construction activities such as project planning, engineering, fieldwork, procurements, consultation with First Nation communities, stakeholder engagements and enabling works to improve site access.

“Northern British Columbia is seeing strong economic growth with opportunities in port expansion and critical minerals mining. The CIB’s involvement in early works will create jobs and support pre-development activities required for the broader NCTL. It will also help to ensure NCTL construction timelines remain on track while respecting the Crown’s commitment to First Nations, in order to meet the demand for clean energy in the province,” said Ehren Cory, CEO, Canada Infrastructure Bank.

Northwest British Columbia is experiencing significant growth across sectors such as port operations, mining, hydrogen production, technology and liquified natural gas. As a result, the anticipated demand for electricity is expected to exceed the capacity of the region’s existing transmission system. The area is currently served by one 500-kilovolt transmission line running from Prince George to Terrace.  

“The North Coast Transmission Line is a once-in-a-generation opportunity to drive economic growth in BC’s Northwest—powering traditional industries and unlocking new ones. We’re grateful for the Canada Infrastructure Bank’s early support, which highlights the national importance of this project. Together with First Nations and the Government of BC, we’re ready to build the infrastructure that will support jobs, attract investment and deliver clean, reliable energy to fuel BC’s next chapter,” said Charlotte Mitha, President and CEO, BC Hydro.

To support this economic development and to meet customer needs, BC Hydro has proposed the NCTL to expand energy infrastructure by building new transmission lines, installing fibre-optic cable, expanding or upgrading substations and increasing capacitor stations.

BC Hydro is working with First Nations to identify leading routes for the NCTL. At the same time, BC Hydro, the Province and First Nations are in discussions regarding co-ownership of the infrastructure, with support from the CIB for financing the NCTL, including options to support Indigenous equity, once early works are complete.

The early works project falls within the CIB’s Clean Power priority sector which has already allocated roughly half of its $10 billion long-term capital to initiatives which boost energy supply and security, advance clean power generation and distribution, create jobs, cut emissions and make the transition to new energy projects more affordable for ratepayers.

“Our government is committed to accelerating these projects at transformative speeds to build strong, sustainable, and thriving communities. The CIBs clean energy investment is an important step to ensure the North Coast Transmission Line has the capacity to support an expanding energy sector in the region. In this critical time for the country, our government is focused on building a more resilient, stronger economy – the North Coast Transmission Line will respond to that need by creating greater prosperity and economic benefits to the province,” said Gregor Robertson, Minister of Housing and Infrastructure and Minister responsible for Pacific Economic Development Canada.

Featured image: (CIB)