Getting arctic infrastructure right

As originally published in Canadian Defence Review magazine.

For Canada, sovereignty in the North is inseparable from security.

Yet, we cannot assert our sovereignty and defend our country without robust Arctic infrastructure. Nor can we unlock new export opportunities, connect communities, or improve prosperity in the North without investing in transportation, energy, communications, and social services, all while respecting relationships with Indigenous communities in the North and nature.

Budget 2025 marks a pivotal and landmark change in commitment. It allocated $1 billion over four years to establish the Arctic Infrastructure Fund, investing in dual-use civilian and military transportation projects in the North, including airports, seaports, all-season roads and highways. The fund is part of $6 billion over seven years aimed at building dual-use infrastructure, administered by Transport Canada in partnership with Canada Infrastructure Bank, Crown-Indigenous Relations and Northern Affairs Canada, the Canadian Northern Economic Development Agency, and National Defence. Iqaluit, Inuvik and Yellowknife – identified as Arctic military hubs - will provide communications, transport infrastructure, and secure storage for supplies—critical enablers for sustained operations.

Urgency into execution

The need for infrastructure in Canada’s Arctic is urgent, but the execution will be complex.

Each project will need to be understood in the overall context of other projects and require sustained coordination and alignment across a broad array of stakeholders. This calls for standing up an Arctic infrastructure program that identifies and maps individual project needs within the overall strategy—one that strengthens security, improves connectivity, and creates lasting economic benefits.

A highly disciplined and methodical approach will be crucial to guide projects through overlapping or varying mandates, permits, consultations, and decision processes of multiple governments – federal, territorial/provincial, Indigenous and municipal – and private sector entities,, to ensure alignment on objectives, approvals, and timelines.

Put simply, you must plan for, secure, and deliberately sequence all required approvals and multi-level partnerships – and keep them actively aligned from initiation through delivery. The objective is disciplined urgency – compressing timelines without compromising legal obligations, environmental stewardship, Indigenous partnership, or stakeholder commitments.

Under normal conditions, large-scale projects are hard to deliver. In the North, the combination of extreme climate and remoteness makes building far more expensive and logistically complex, reinforcing the need for a disciplined, methodical approach to planning and execution.

Six pillars to guard against failure

Successful project management for Arctic projects demands an operating framework focused on six essential pillars:

Investment and business planning
Governance and oversight
Organizational structure and performance metrics
Financial structuring
Approvals and social licence,
Delivery and risk management.

Good governance is crucial for major project success. Good governance means looking at the entire project, ensuring decisions are made by the right people at the right time and with the right information. It establishes clear accountability, authority, and issue-escalation protocols, defines roles and responsibilities, and embeds oversight and reporting mechanisms at all levels to ensure alignment and transparency over the project’s entire lifespan.

Although Bill C-5 streamlines federal regulation, project owners still face a multi-regulator, multi-permit ecosystem. They will dedicate resources and attention to early-phase activities – front-loading efforts – to establish a robust foundation for project success. This includes early stakeholder engagement, thorough baseline environmental studies, comprehensive risk planning, alternative assessments to ensure the most feasible and sustainable approach is selected, and clearly defining and justifying the project’s necessity, goals and desired outcomes.

Arctic projects demand strong governance frameworks to manage complexity and risk, integrating clear accountability, oversight, and transparency across federal, territorial/provincial, and Indigenous stakeholders are critical.

Though the $1-billion Arctic Infrastructure Fund is a promising start, predictable funding and innovative models are critical.

Arctic conditions amplify project risks due to melting permafrost, limited labour, extreme cold, and delivering supplies to remote areas. Robust upfront planning, risk management, project controls, scenario planning, and contingency are essential to keep timelines and costs on track.

By implementing agile procurement strategies, modular construction, and advanced technologies like supply chain surveillance tools, organizations can reduce costs, accelerate timelines, and overcome geographical and climatic difficulties.

The referral of the Iqaluit Nukkiksautiit Hydro Project to the Major Projects Office for fast-tracked approval is an important example of a project promoting Arctic sovereignty and defence and building healthy communities with affordable power and energy.

The project, estimated to cost $500 million, helps Iqaluit end its reliance on diesel-powered generators. Right now, the project is wrapping up front-end engineering and design phase, with construction expected to begin in 2028.

Integration is key

With strategic foresight, innovative solutions, and respect for Indigenous partnerships, Canada has an unprecedented opportunity to build a resilient, secure, and inclusive Arctic for generations to come.

This integrated approach—where defence, economic development, community building, environmental stewardship, and collaboration —is not just aspirational but essential.

Together, we can ensure the Arctic stands as a testament to sustainable sovereignty, co-created resilience, and shared prosperity.