Building Local Capacity

Shell Canada is developing the Athabasca Oil Sands Project – a joint venture set to boost the GDP of the province of Alberta by C$2 billion in 2002. The company is helping build the community’s capacity to supply business services so that locals can benefit from the economic development.

Shell’s support in Athabasca ranges from funding business development courses to forming alliances with local contractors.

A Business Alliance formed by Shell – through its mine operating company, Albian Sands – with the community of Fort McKay has so far awarded C$25 million in contracts to nine aboriginal businesses. One has enabled an aboriginal-owned company to develop from its original business of brush clearing into a low cost, safe mining contractor. Another local company has been contracted to supply housekeeping and catering services to the mine camp.

Training initiatives include the Aboriginal Apprenticeship Programme, devised to increase the participation of aboriginal people in high-demand trades. A committee has been established to identify large-scale regional opportunities for First Nation people to participate in the development of natural resources.

The project also looked at climate change issues and an independent expert panel helped establish the new Athabasca Oil Sands Project goal of 6% fewer GHG emissions than the imported crude this source will displace by 2010.

It is too early to identify lessons from Shell Canada’s experience. But it is clear that the long-term benefits of large projects will only be fairly shared with the full participation of local communities.