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Agreement resolves historic injustice with First Nation

VICTORIA – The Province and BC Hydro joined the Kwadacha First Nation to sign a final agreement today that provides the First Nation with tools to build a prosperous future for their members, announced Michael de Jong, Minister of Aboriginal Relations and Reconciliation.

"This agreement addresses the historical hardships Kwadacha endured for several decades and is a significant achievement that results from the hard work and desire by all parties to achieve reconciliation for past injustices," said de Jong. "The final agreement is another meaningful example of the Province's commitment under the New Relationship to engage in collaborative dialogue with First Nations and provides Kwadacha with the means to cultivate a brighter future for generations to come."

The agreement provides an initial payment of approximately $15-million and annual payments of approximately $1.6-million to the Kwadacha First Nation, with future adjustments for inflation. The majority of the initial payment will be used to establish an endowment fund to secure future economic returns. Kwadacha will also establish an advisory committee to hear requests and suggestions from community members on an ongoing basis, so that funds will produce the best community and economic benefits.

"This agreement acknowledges that the construction of the W.A.C. Bennett Dam and Williston Reservoir more than 40 years ago caused significant economic and social problems for the Kwadacha," said Chris O'Riley, BC Hydro's senior vice-president of engineering, Aboriginal relations and generation. "At the same time, the agreement enables us to move forward by building a new relationship between the Kwadacha and BC Hydro that is based on mutual understanding, respect and trust."

As a result of the settlement, Kwadacha First Nation is undertaking a comprehensive plan to address housing shortages and improve living standards in the community of Fort Ware. Kwadacha has already started building a new arena for their community and are in the preliminary stages of planning a guide outfitting company with an eco-tourism focus.

Provisions in the final agreement will provide the First Nation community with important contracting and employment prospects. For the next 10 years, Kwadacha will oversee a contract to maintain the road to their village in Fort Ware and will also be offered contracts within the Williston Reservoir. These opportunities will increase the community's ability to bid for other contracts in the area, further securing economic returns for many years.

"This agreement will not heal the past but will enable our people to move forward and our youth to succeed in these challenging times," said Chief Donny Van Somer. "We look forward to the benefits it brings, to a new relationship with Hydro, and to concluding our discussions on stable long-term electrical service in the community.

The government of British Columbia is building a new relationship with First Nations on the principles of mutual respect, recognition and reconciliation. For more information about the New Relationship, visit www.gov.bc.ca/arr.

Contact:

Maria Wilkie
Communications Director
Ministry of Aboriginal Relations and Reconciliation
250 953 3211
250 361 7720

Susan Danard
Manager, Media Relations
BC Hydro
604 623 4220
604 418 4782 (cell)

Chief Donny Van Somer
Kwadacha Nation
250 563 4161

Kwadacha Final Agreement

The Williston Reservoir was created by the construction of the W.A.C. Bennett Dam, completed in 1967. The reservoir is the largest body of water in British Columbia and the ninth largest man-made lake in the world. The creation of the reservoir exacerbated the isolation of the Kwadacha and increased their cost of living. It severely impaired the ability of the First Nation to continue their traditional way of life based on hunting, trapping and gathering.

Legal History

In 2001, the Kwadacha First Nation commenced litigation against BC Hydro, the Province and Canada for alleged breach of fiduciary duty and infringement of Aboriginal rights, and damages related to the construction and operation of the Bennett Dam and Williston Reservoir.

In December of 2006, the provincial government announced an agreement-in-principle between the Province, BC Hydro and the Kwadacha First Nation to recognize the socio-economic impacts of construction of the dam and reservoir. In July of 2008, negotiators for BC Hydro and the Kwadacha First Nation initialled a final agreement and related certainty provisions.

The final agreement received ratification on Oct. 23, 2008, when the Kwadacha First Nation voted in favour of the agreement, with 95 per cent of the ballots cast in favour.

Final Agreement

The final agreement was negotiated to addresses the impacts of flooding from the creation and operation of the W.A.C. Bennett Dam and Williston Reservoir in northern B.C. The agreement provides approximately $15-million as an initial payment and annual payments of approximately $1.6-million to the Kwadacha First Nation. Annual funds will be paid in perpetuity and will be adjusted every year to offset inflation.

The majority of the initial funds paid will go into an endowment fund that will be managed by investment professionals. The final agreement also requires that proposed expenditures be submitted to an independent "Payment Trustee" to ensure they meet the test of providing community social and economic benefits. Audit reports will also be prepared and available to members at the end of each year so that the community is fully aware of how and where the funds are being used.

In return for funds paid to Kwadacha, the settlement provides for certainty of current and future operations of BC Hydro's Peace River facilities (the W.A.C. Bennett Dam, Williston Reservoir and Peace Canyon Dam) and releases the Province and BC Hydro from existing litigation by Kwadacha.

Source: BC Hydro News