Feds announce $35B for infrastructure, defence in Canada’s North

The Government of Canada announced a new plan backed by over $40 billion, including more than $35 billion in federal investments to defend, build, and transform Canada’s Northern and Arctic region, and major projects that represent around $10 billion in investment.

At the centre of this plan, according to Prime Minister Mark Carney, are the 140,000 Northerners and Indigenous Peoples who will have stronger, more sustainable, more connected communities, greater opportunities, and a lower cost of living.

“After decades of limited and piecemeal investments in the North, Canada’s new government is acting with a scale of ambition worthy of this vast region and its peoples,” said Carney. “We are securing every corner of this terrain, unlocking its vast resources, and delivering the strong, connected network of communities that Northerners deserve. In this new era, we cannot rely on other nations for our security and prosperity. We are defending and building together, the true North, strong and free.”

The new measures include:

  • Investing $32 billion at Forward Operating Locations in Yellowknife, Inuvik, and Iqaluit, and at Deployed Operating Base 5 Wing Goose Bay.
  • This will also build both military power and economic strength. It will enable the Canadian Armed Forces to defend the Arctic without the help of Allies, allowing Canada to take control of our Arctic security. This includes infrastructure upgrades such as airfield upgrades; new or repurposed hangars; ammunition and fuel facilities; and buildings and equipment for accommodations, warehousing, IT, and general support.
  • Announcing two new Northern Operational Support Hubs (NOSHs) at Whitehorse and Resolute, and two new Northern Operational Support Nodes (NOSNs) at Cambridge Bay and Rankin Inlet, backed by an investment of $2.67 billion.
  • This network will enable the Canadian Armed Forces to deploy rapidly and support year-round response across the Arctic and North, no matter how remote.
  • Investing $294 million in Arctic airports, including building a runway overlay and modernising Rankin Inlet Airport and upgrading Inuvik Airport.
  • This will ensure larger aircraft can land, connecting Northern communities to the rest of the country year-round to enable faster, more convenient, and lower-cost travel for both the military and civilians.

The federal government is also referring the following projects to the Major Projects Office:

  • The Mackenzie Valley Highway
  • This 800 km-long highway will become a vital artery for the region, providing essential year-round access to Indigenous and remote communities in the Mackenzie Valley, building on an initial federal investment of over $100 million.
  • This road will connect Yellowknife to Inuvik, and open up commercial opportunities along the route.
  • The Grays Bay Road and Port and the Arctic Economic and Security Corridor
  • These projects will connect Nunavut to the national highway system via the Northwest Territories and become Canada’s first overland connection to a deepwater port on the Arctic Ocean.
  • Together, these projects will connect strategic mineral deposits to national road networks and tidewater – linking Canada’s North to new global markets and ensuring reliable access to Canadian minerals.
  • The Grays Bay Road and Port is a proposed all-season road of approximately 230 km from the Nunavut border to a deepwater port and airfield at Grays Bay, on the strategic Arctic Ocean. The project includes a deepwater export terminal for minerals and an airstrip, which will both have dual-use civilian and military potential.
  • The Arctic Economic and Security Corridor project is a proposed all-season road of approximately 400 km through the Slave Geological Province to the Nunavut border, where it will connect with the Grays Bay Road.
  • Collectively, these projects will build the infrastructure required to advance potential copper, gold, and zinc mining projects, and support increased mining exploration activity.
  • Taltson Hydro Expansion Project
  • This will add 60 megawatts to the existing hydro system, doubling the Northwest Territories’ hydro capacity and serving 70% of residents.

“These investments will continue to build the Defence team’s presence and responsiveness across the Arctic and the North, reinforce our ability to assert Canadian sovereignty, support community benefits where feasible, and contribute to NATO’s deterrence and defence priorities. Furthermore, Canada’s efforts to modernize our continental defences demonstrate our commitment to enabling the North American Aerospace Defense Command and the Canadian Armed Forces to defend against emerging threats to North America,” added David J. McGuinty, Minister of National Defence.

Featured image: (Government of Canada)

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