$65 million funding amendment advances Mackenzie Valley Highway construction and procurement

News Releases

Yellowknife — August 11, 2026

The Government of Canada has approved an amendment to the 2018 National Trade Corridors Fund contribution agreement, allowing the Government of the Northwest Territories (GNWT) to realign $65 million in existing federal funding toward construction, procurement and planning for near-term road and bridge projects along the Mackenzie Valley Highway corridor.

The amendment will allow standalone projects to proceed within current regulatory timelines and advance while environmental assessment and design work continue for the proposed highway north of Wrigley.

Work underway in 2026 includes:

  • Highway 1 Targeted Resurfacing: Resurfacing work is underway between N’Dulee Crossing and Wrigley, improving the existing connection to the southern end of the proposed highway.
  • Oscar Creek Bridge Relocation: Procurement for construction is beginning this summer, with construction activities expected to follow during the 2026-27 winter season. The project will relocate the existing bridge and realign part of the Mackenzie Valley Winter Road to support the proposed future highway alignment.
  • Christina Creek Realignment: Permitting and licensing are underway, with construction procurement anticipated in fall 2026 and construction expected to follow in 2027.
  • Smith Creek Bridge: Planning, design and regulatory work is advancing, with procurement underway to support the next stage of the project.
  • Wrigley Bypass: Routing, planning, design, geotechnical and regulatory work continues to advance.

These projects will improve existing infrastructure, support future highway construction and create opportunities for northern and Indigenous workers and businesses.

The proposed Mackenzie Valley Highway is an all-season transportation corridor extending from Wrigley to Inuvik. The section between Wrigley and Norman Wells is currently undergoing environmental assessment, while the GNWT works with Indigenous governments, communities and regulatory partners to advance an integrated approach to planning and assessment of the broader corridor. Environmental and geotechnical fieldwork, Indigenous Knowledge, socio-economic research and community engagement are continuing to inform the proposed route and future construction. Engagement is also underway in communities between Norman Wells and Inuvik, where the corridor has not yet been finalized.

Community and business readiness work is advancing alongside the technical work, including labour-market analysis, training and employment planning and preparedness for future procurement opportunities.

The GNWT continues to work with Indigenous governments and communities, the Government of Canada, the Major Projects Office and regulatory partners to advance the highway and prepare for larger-scale construction once the required approvals and funding are in place.

 

Quotes

“The Mackenzie Valley Highway is a transformative project for the Northwest Territories and an important part of building a stronger, more connected North. The work advancing this year will improve existing infrastructure, support future construction and create opportunities for northern and Indigenous workers and businesses.

“This amendment allows us to advance work that can proceed now while environmental assessment and planning continue for the broader corridor.”

Caroline Wawzonek
Minister of Strategic Infrastructure, Energy and Supply Chains

 

“The Mackenzie Valley Highway will strengthen northern transportation and supply chains, connect communities and create new economic opportunities across the region. Directing $65 million in existing funding toward priority road, bridge and planning work will help deliver progress along this important corridor and lay the groundwork for long-term growth and opportunity across the North.”

The Honourable Steven MacKinnon
Minister of Transport and Leader of the Government in the House of Commons

 

“The Mackenzie Valley Highway has been a priority for people in the Sahtu for generations. It is encouraging to see tangible work moving ahead along the corridor, and important that Sahtu residents and businesses are prepared to participate as the project advances. I look forward to continuing to work with the GNWT, Indigenous governments and Canada to keep the project moving and ensure it delivers lasting benefits for our communities.”

Daniel McNeely
Member of the Legislative Assembly for the Sahtu

 

Quick facts

  • In 2018, Canada committed $102.5 million and the GNWT committed $37.5 million toward Mackenzie Valley Highway planning, environmental assessment and related projects, for a combined investment of $140 million.
  • Canada’s National Trade Corridors Fund supports transportation infrastructure that strengthens trade, improves the movement of people and goods, builds resilience and addresses the transportation needs of Arctic and northern communities.
  • The proposed highway would create an approximately 800-kilometre all-season transportation corridor between Wrigley and Inuvik. Since 2018, community capacity-building projects associated with the highway have delivered 20.7 kilometres of new all-season road.
  • Construction of the Prohibition Creek Access Road employed 95 people at its peak, including 61 Sahtu residents, and provided nearly 2,600 hours of training.
  • Prime Minister Mark Carney referred the Mackenzie Valley Highway to Canada’s Major Projects Office on March 12, 2026.
  • On June 24, 2026, Canada initiated the process to consider the highway for listing as a project of national interest under the Building Canada Act.

Construction remains subject to environmental assessment, regulatory approvals, funding and a formal decision to proceed.

Related links

For media requests, please contact:

Cabinet Communications
Government of the Northwest Territories
presssecretary@gov.nt.ca