The federal government has identified three major projects it plans to move forward under the Building Canada Act, a key initiative aimed at accelerating infrastructure development. The announcement was made on Wednesday in Yellowknife by Energy and Natural Resources Minister Tim Hodgson alongside Transport Minister Steven MacKinnon, Crown-Indigenous Relations Minister Rebecca Alty, and Northwest Territories Premier R.J. Simpson.
All three projects are located in northern Canada and are candidates for designation as projects of national interest, a status that would streamline federal regulatory approvals by removing certain procedural hurdles. Two of the projects—the Mackenzie Valley Highway Project in the Northwest Territories and the Grays Bay Road and Port Project in Nunavut—had already been referred to the federal Major Projects Office earlier this year. The third, a nuclear waste deep geological repository near Ignace in northwestern Ontario, was added to the office’s oversight as part of Wednesday’s announcement.
The Mackenzie Valley Highway Project proposes an all-season road connecting Wrigley to the Dempster Highway, potentially cutting travel time between Yellowknife and Inuvik by about 15 hours and linking two NORAD Forward Operating Locations. The Grays Bay project involves constructing a 230-kilometre road, a deepwater port, and an aerodrome on the Arctic Ocean, with potential ties to the Arctic Economic and Security Corridor. The nuclear waste project, led by the Nuclear Waste Management Organization (NWMO), aims to build underground tunnels to securely store used nuclear fuel at depths of 650 to 800 metres. The NWMO is a not-for-profit formed by Canadian nuclear electricity producers.
The Building Canada Act, passed last year under Prime Minister Mark Carney’s government, allows cabinet to designate projects as being in the national interest after consultation with Indigenous communities and other governments. Such designation legally presumes in favor of allowing the project, intended to expedite approval timelines. However, the process requires a consultation period before final designation, ensuring continued engagement with Indigenous governments and regulatory bodies.
Premier R.J. Simpson emphasized that fast-tracking approvals would not bypass the Northwest Territories’ established consultation protocols stemming from land-claim agreements. “Our regulatory system will continue to operate with robust environmental protections and treaty-based oversight,” he said.
The government’s infrastructure agenda, a central promise of the Liberal Party’s 2025 election campaign focused on economic growth and trade diversification, has faced criticism from some quarters for perceived delays. Since its establishment last year, the Major Projects Office has received 16 project referrals and seven broader strategies, but only these three have progressed toward potential national interest status.
Critics, including Conservative MPs and some academics, caution that the initiative may be more symbolic than substantive without clear timelines for project launches. Conservative MP Shannon Stubbs described the government’s approach as creating an “illusion” of progress, arguing that underlying regulatory barriers remain unaddressed. University of Calgary professor David V. Wright noted challenges in balancing expedited approvals with constitutional duties for Indigenous consultation, suggesting that effective outcomes will only become clear over time.
As the government moves forward with consultations and political decisions on the three projects, stakeholders will be watching to see if the Building Canada Act’s fast-tracking mechanism can deliver meaningful acceleration in infrastructure development across northern Canada.
