Carney's Fast-Track Infrastructure Program Faces Delays and Limitations

Prime Minister Mark Carney's program to fast-track approvals for nation-building projects has been ineffective so far, with the Major Projects Office not having accepted any projects more than six months after the legislation became law. Parliament passed Bill C-5 — the One Canadian Economy Act — in June 2025, creating the Major Projects Office to speed up permitting for projects deemed important to Canada's national interest, but the conveyor belt hasn't really started moving yet.

Cabinet will have final say on which of the 13 projects from around the country, including a hydroelectric plant for Iqaluit, end up on the fast track. When this happens, the chosen projects will get upfront federal approvals "shifting the focus of regulatory review from 'whether' to proceed to 'how' the project can proceed." It's not clear when cabinet will start this work, but from there, the idea is projects get federal permitting within two years.

The review process for large infrastructure projects in Nunavut often takes between seven and 10 years. The B2Gold Goose Gold Mine opened in September after a decade-long push that included federal and territorial permitting, environmental and water licensing and feasibility studies. "Streamlining things to two years – I think that could do wonders for Nunavut," said the Nunavut general manager of NWT & Nunavut Chamber of Mines.

The Nunavut government and Nunavut Tunngavik Inc. have identified four "nation-building" projects on their fast-track wish list — Qikiqtarjuaq port, Iqaluit hydroelectric project, Kivalliq hydro-fibre link and Grays Bay road and port. All have been in the works for decades, with plans for a deepsea port in Qikiqtarjuaq going back to the 1950s. They are being "studied to death" — stalled in decades-long review processes like many big infrastructure projects across Canada.

Carney's list of 13 projects, including Iqaluit's hydro project, are not guaranteed to be accepted into the Major Project Office's fast-tracking system. But the Major Projects Office can also help projects co-ordinate reviews across federal departments to reduce risk.

Construction on Iqaluit's $500-million hydroelectric power plant project, led by Nunavut Nukkiksautiit Corp., could start in 2028 — two years sooner than initially estimated. However, the CEO and president of Nukkiksautiit has rejected the idea the hydro plant will be fast-tracked. That's because the Major Projects Office can only help with federal permits. "The project must move through the [Nunavut Impact Review Board] process and receive approval there in order for construction to be possible," said a manager for Nukkiksautiit Corp. "Being named to the nation-building projects list does not mean that the project is fast-tracked."

The Major Project Office's role is to co-ordinate federal and local permitting so approvals happen in tandem. The federal northern affairs minister has final say on NIRB recommendations under the Nunavut Agreement, but that power is limited. The minister can reject a recommendation that a project not proceed by deeming the project has "importance in the national or regional interest," according to the Nunavut Agreement. The minister must then send the proposal back to the review board for reconsideration.

A not-so-fast track is not necessarily bad news, said Nunavut MP Lori Idlout. She said she believes Carney's government is "realizing" it cannot override "the free, prior and informed consent of Indigenous Peoples." Idlout was critical of the One Canadian Economy Act, along with Inuit Tapiriit Kanatami and other Indigenous groups, who said it would infringe on Indigenous rights over what happens on their land.