Reducing Transaction Costs on Infrastructure Corridor Projects in Canada

AndreÌ Le Dressay, Jason Calla and Jason Reeves
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AndreÌ Le Dressay: Fiscal Realities Economists
Jason Calla: First Nation Infrastructure Institute
Jason Reeves: Fiscal Realities Economists

SPP Research Papers, 2022, vol. 15, issue 11

Abstract: Infrastructure corridors are among the most complicated transactions in Canada. Establishing a pre-determined corridor and completing linear infrastructure projects within it requires transactions related to property rights, infrastructure planning, design, construction, financing, operation and maintenance, securing public support or social licence, and because of the long overdue recognition of Indigenous rights and title, informed support from affected Indigenous communities. This paper uses a comparative systems analysis to identify specific transaction costs in four areas — historic, infrastructure development process, fiscal and economic systems. We argue these transaction costs can be significantly reduced by systematically implementing Indigenous fiscal, infrastructure and lands jurisdictions because this will permanently ensure that Indigenous communities and people are able to receive similar fiscal and economic benefits generated from infrastructure corridor projects as those enjoyed by other Canadians and other governments.

Date: 2022
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