Editorial

May 1 2024

Community benefit agreements critical parts of economic development

One of the most important aspects to look at when considering development proposals for rural areas is the possible benefits that could accrue to the local communities.

As Alec Bruce reports on page one this week, EverWind Fuels Inc. has struck a community benefits agreement (CBA) with the Municipality of the District of Guysborough (MODG). The deal is part of EverWind’s plans to generate power from wind farms to be built in Guysborough County – mostly in MODG. The agreement could bring major money into the municipality, on top of the commercial tax revenues to be realized from this project.

The EverWind Project is scheduled to become operational in 2027-2028, with separate wind farms operating in MODG, the District of St. Mary’s and Antigonish County.

The concept of a community benefits agreement is not exactly new to readers of this paper over the years. These agreements usually cover everything from employment opportunities for local residents to community supports and supplier interests.

But it’s important to note that the signing of a CBA is no guarantee of benefits for the community. Sometimes projects don’t go forward, as with Goldboro LNG. And, sometimes they take a very long time to get started.

The timeline attached to maturation of large industrial projects, such as we’ve seen with the proposed container terminal at Melford, is complex and often beyond the will of the community and even the proponent. Patience is typically the order of the day.

While we don’t know if the container terminal project will end up being built, we do know that, if it does after all these years, the proponents will be obligated to fulfill their commitments to the local community, thanks to the efforts of the late MODG warden, Lloyd Hines, and the council at the time, in establishing a community benefits agreement.

And, despite the speed at which EverWind and the province appear to be moving in developing a hydrogen industry in the Strait region, powered by wind energy, we see concerns being raised in increasing frequency lately, and these concerns will have to be addressed. Questions are being raised about the impacts on wildlife habitats and recreational spaces, public consultations and other issues.

The key thing about getting a CBA done early in the process is that these benefits can start to be accrued as soon as all approvals are in place and the final investment decision is made.

While the exact details of this particular agreement are not being released, we do know that the financial aspect is significant, and that could open up significant new opportunities for community investments – if the project becomes a reality.