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Benchmarking fiscal benefit distributions through Impact Benefit Agreements: A case study of the Trans Mountain Expansion Project

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Author: Dale, Daniel
Impact Benefit Agreements (IBAs) are increasingly important in the planning and successful execution of major resource development projects in Canada. IBAs are tools of Indigenous community development and are intended to help return resource development benefits to locally impacted Indigenous communities. Fiscal benefits delivered through IBAs are often a much needed source of community funding. This report presents a methodology to evaluate the quantum of fiscal benefits Indigenous governments receive through IBAs relative to benchmark standards developed though a literature review. The methodology is applied to a case study of the Trans Mountain Expansion Project. The results show that IBAs likely fall short in their objective to deliver an adequate share of fiscal benefits to Indigenous governments relative to the fiscal benchmarks used in the evaluation. This report aims to provide tools and recommendations to aide First Nations in the negotiation of IBAs so as to provide a more equitable distribution of the benefits of natural resource development in Canada.
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