I now write in defense of megaprojects. Some of my friends will gasp. Some may even lose their breakfasts, at least figuratively.
It's worth a discussion, though. It has become fashionable to bash large state-sponsored infrastructure projects, but some points are being missed. I will not defend these projects, which will rise or fall on their own merits, but I will critique the way we're thinking of them.
Susitna hydro, the Ambler resource road, Juneau access road, the Knik Arm Crossing and the extension of the Alaska Railroad in the Mat-Su Borough have been getting press lately. I do believe criticism is good because critics keep us on our toes.
To cite a famous example, the trans-Alaska oil pipeline was built to be much safer, particularly in regard to permafrost, thanks to the criticism and critiques of conservation groups.
Having said that, the discussion shouldn't be simplistic. Let's start with terminology. None of those projects, except Susitna and maybe the Knik Arm bridge, is a megaproject.
That term is more properly applied to projects costing several billion dollars. The Alaska LNG Project, at $45 billion to $65 billion in cost, is a true megaproject. Susitna, at $5 billion-plus, fits the category. The Knik Arm Crossing, if it costs more than a billion (including the approach roads), might qualify, but barely.
Juneau's road, the road to Ambler and the Alaska Railroad extension are not megaprojects. They are big, to be sure, but the misapplied term makes them sound bigger.
Still, all are worthy of a periodic critique.
Let's start with the proposed Ambler mining road from the Dalton Highway to the Ambler Mining District in the western Brooks Range. I can't fault operators of eco-lodges for being upset at having to fly clients over beautiful wilderness and seeing, horrors, a road. I don't blame villagers in the region for being nervous about outside sport hunters and sportfishing groups driving into their country.
But times are changing in this state. The oil spigot is running down. We have to diversify to support an economy, and mining jobs pay good wages and are long-term.
There have been significant copper discoveries in the Ambler area, and one or two mines being developed could create a lot of jobs and economic well-being for this region. I'll let eco-lodge operators fend for themselves, but without some source of local jobs, what's the economic future for those villages? The future I see is continued depopulation.
Look at what the Red Dog Mine has done for Northwest Alaska, as the alternative. That road and port, built by the state in the mid-1980s and with the state's investment now paid off by the mine, was strategic public investment in regional economic development, and a wise one. No one quibbled at the time.
What we're doing with the Ambler road is securing permits for another Red Dog. A road won't be built unless mines are actually developed to pay for it. That's the way AIDEA, the state development corporation, does its business. AIDEA built the Red Dog infrastructure too, by the way.
How about the railroad extension through the Mat-Su Borough, to Port MacKenzie? This is, for now, a state-funded project, but the 31-mile rail link is now more than half-constructed, with $184 million invested so far. Money will have to be found to finish it, about $125 million, and that's a challenge. Some form of public-private partnership may be needed.
But think of it, like the Red Dog port and road, as strategic investment. This extension will lower the cost of moving coal and other commodities from Interior Alaska to export markets. If the Alaska LNG Project is built, this new rail will carry equipment and material and take heavy loads and trucks off the Parks Highway (anyone remember what the Richardson Highway was like after the pipeline's construction?). It would be a huge waste not to finish this, but finding the money will be an issue.
All of these projects -- Juneau access, a bridge across Knik Arm, the road to Juneau, Susitna -- are infrastructure and each has its positives and negatives. We also have a half-finished engineering building at the University of Alaska Fairbanks, and education facilities are also strategic infrastructure. We probably can't build all of these but we should at least complete the ones that are half-built.
What's important now is to think of these as strategic investments to allow our economy to grow, and this is now even more important. When times are looking tough, smart business people look to buy assets (typically, other businesses). Smart people also look to build things because prices fall and contractors' margins get narrower.
What we shouldn't do is just stop everything and waste the investments we've already made.
Tim Bradner is co-publisher of Bradners' Alaska Legislative Digest. He writes a regular column for Alaska Dispatch News.
The views expressed here are the writer's own and are not necessarily endorsed by Alaska Dispatch News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary@alaskadispatch.com. Send submissions shorter than 200 words to letters@alaskadispatch.com or click here to submit via any Web browser.