CHALLENGE
During negotiations on electric power tariff agreements in 2011, Alcoa Canada was in a favorable position to consider a mechanism for reallocate the funds to the communities in Quebec where an Alcoa plant is located.
PROPOSED SOLUTION
MU Conseils was invited as a core contributor to this strategic thinking process, by helping to structure a $25 million worth, 25-year investment fund: the Alcoa Sustainable Communities Fund. At first connected to the public participation process “Ma Ville Ma Voix” already set up in Baie-Comeau, the initiative was replicated in the two other Quebec communities where Alcoa has industrial facilities: Bécancour and Deschambault-Grondines/Portneuf. The objectives and guidelines of the Fund’s local components have been designed to increase the power of action of the initiative, by establishing a culture of public participation focused on sustainable development and investing in community quality of life. The local components of the Alcoa Fund (not to be confused with the Alcoa Foundation) are meant to finance projects as the outcomes of public consultation. The components are unique and innovative in that they also finance community structuring and mobilization, by facilitating such processes.
RESULTS
- Creation of financial leverage worth $25 million over 25 years (until 2037), allotted as follows: Baie-Comeau: $400,000/year; Bécancour: $300,000/year; Deschambault-Grondines/Portneuf: $300,000/year;
- Implementation of over 140 community projects to date in the three communities;
- The leverage effect of the Fund for Baie-Comeau is approximately 15% (meaning that 85% of project financing comes from investment by partners such as the communities themselves);
- Ongoing support for the board of directors of the Fonds Aluminerie de Baie-Comeau pour les collectivités durables;
- Leading of the continuous improvement and harmonization process for the three projects (Baie-Comeau, Bécancour and Deschambault-Grondines/Portneuf).
To find out more about the Aluminerie de Baie-Comeau sustainable community fund, click here.
