Order in Council 1387/2019

On the recommendation of the undersigned, the Lieutenant Governor of Ontario, by and with the advice and concurrence of the Executive Council of Ontario, orders that:

Whereas the Government of Ontario has committed to expanding the transmission network to support communities and, in particular, northern and remote First Nations communities;

Whereas pursuant to clause 7(3)(h) of the Ministry of Energy Act, 2011 (the “MOEA”), the Minister of Energy, Northern Development and Mines (the “Minister”), subject to the approval of the Lieutenant Governor in Council, may make loans;

Whereas pursuant to sub-clause 7(2)(e)(i) of the MOEA, the Minister may do any one or more of encouraging, promoting, developing or participating in such activities, projects and programs as the Minister considers appropriate, including to provide for the availability of energy in Ontario;
Whereas in furtherance of expanding the transmission network and pursuant to the Minister’s legislative authority, the Minister wishes to make a loan to Wataynikaneyap Power LP (Watay) which is seeking to build new transmission facilities in Northwestern Ontario to connect 16 remote First Nations communities to the transmission network;

And whereas it is desirable for the Minister to exercise his authority under the MOEA to facilitate the building of a new transmission line.

Now therefore, pursuant to section 7(3)(h) of the MOEA, the Minister is hereby authorized on behalf of Her Majesty the Queen in right of Ontario, to make such a loan to Watay that includes the following key provisions:

1. The loan will be made to Watay to:
   1. Construct the Phase 1 line from Dinorwec to Pickle Lake; and
   2. Construct the Phase 2 lines to connect the remaining 15 communities to the electricity grid;
2. The principal amount of the loan is up to $1.34 billion;
3. The Final Maturity Date for the loan is December 30, 2025. All outstanding balances will become repayable at that time;
4. The interest rate will be equal to the Ontario 3-month Treasury Bill rate, plus an administrative fee of 10 basis points and a credit spread of 49.9551 basis points (bps, or 0.599551 percentage points total);

And such additional terms and conditions and for such security as the Minister deems appropriate to facilitate the expansion and connection to the transmission grid referred to herein;