Additional Support for the Aboriginal Loan Guarantee Program
Ontario's Aboriginal Loan Guarantee Program supports Aboriginal participation in new transmission and renewable energy generation projects, such as wind, solar and hydroelectric.
The province has committed to a $150 million expansion of the loan program, which represents an increase over the original $250 million program announced in the 2009 Ontario Budget. The Aboriginal Loan Guarantee Program is administered by the Ontario Financing Authority. Applications are accepted on an ongoing basis and are available through the Ontario Financing Authority's website.
Aboriginal communities are eligible for loan guarantees that allow them to take on equity participation in renewable generation and transmission projects. The program facilitates Aboriginal ownership in energy projects by providing loan guarantees for up to 75 per cent of an Aboriginal corporation's equity in an eligible project, to a maximum of $50 million per project.
The Mother Earth Renewable Energy Project and the Lower Mattagami Project have been approved for loan guarantees under the Aboriginal Loan Guarantee Program. A number of other applications to the program are currently under review, including wind, solar and hydroelectric and transmission projects.
The Mother Earth Renewable Energy Project is a four-megawatt wind farm on Manitoulin Island that is 100 per cent owned by M'Chigeeng First Nation. The project will generate revenue for M'Chigeeng First Nation for 20 years.
Moose Cree First Nation will have an equity position of up to 25 per cent of the Lower Mattagami Project, Ontario's largest northern hydroelectric-generating construction project in 40 years. The project will employ about 800 people during peak construction periods and will increase Ontario's supply of clean, renewable power by about 440 megawatts.