$20M pledged for 14-kilometre road near Norman Wells, N.W.T.

It's not quite an all-weather road up the Mackenzie Valley, but Norman Wells will be getting a new 14-kilometre stretch of road following a $20 million government funding announcement on Thursday.

The gravel road, which is being touted "another step towards the construction of Mackenzie Valley Highway," will connect the struggling oil town with Canyon Creek, an undeveloped swath of land south of the community.

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It replaces a segment of the Mackenzie Valley winter road. The all-weather road will link up with a new quarry site, and provide "improved access to traditional Sahtu lands for recreation, tourism, and business development," according to the Government of the Northwest Territories.

The project has been on the cards since at least 2015, andwasapproved by the Sahtu Land and Water Board in February last year. The source of funding, however, was unclear at the time.

• New all-season road planned from Norman Wells to Canyon Creek

As per Thursday'sannouncement, the federal government will be providing $15 million, while the territorial government will provide $5 million.

The actual work will be done by a joint partnership between between Tulita District Investment Corporation and Norman Wells' HRN Contracting.

According to government press materials, "This project will offer training opportunities for approximately 12 trainees and 16 heavy equipment operators, and employment opportunities for 50 people during the construction and road improvements."

A boon for local economy

Although the road doesn't appear to open access to much area of economic interest beyond the quarry and some new hunting and recreation grounds the president of HRN says the project will be a much-needed boon for the local economy.

Things have been tough for Norman Wells companies "since Husky and Conoco shut 'er down and kind of pulled out," says David Hodgsonof the Sahtu oil and gas exploration bubble that burst in 2014.

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"All businesses have been affected negatively with the lack of oil and gas exploration in the area. There's been a reduction in operational support activities overall as well for all aspects of construction work in the Sahtu."

Things got even grimmer early this fall with an announcement from Imperial Oil, the town's main employer for nearly eight decades, that it was looking to sell its oil and gas assets in the community.

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In the midst of this, Hodgson says government projects like the Canyon Creek road provide a something of economic lifeline.

"I'm sure there will be employment benefits and benefits for Northern suppliers, local suppliers of construction equipment, signage, guardrails, different things like that."

Investments also act as signal to would-be investors in the region, he says.

"I think this demonstrates the government's trust that local contractors can execute these types of projects.

"Furthermore, moving forward with these types of initiatives should clearly show potential developers that the government is prepared to invest in the region."

He expects construction on the road to begin this year. The build is expected to take between six and eight months to complete.

"I hope exploration picks up a lot sooner than that. We need something to happen here. Down the road, things have to happen. This is just going to help out for the next year, for sure."