First Nation Partners – an Obstacle?

One of the main problems with partnerships is the idea of internal conflicts which is where one decision will not always and cannot satisfy all the partners because each partner has conflicting opinions. This was demonstrated with the decision of implementing BC Hydroelectric megaproject. Every choice always has a trade off just like how every decision has its pros and cons. In this case the choice is either building a 1100 watt generating station or losing fishing and hunting opportunities and land for ceremonial purposes. As a result, getting to an agreement is very hard to come about mutually between many partners.

In this instance, it may affect the business model for the energy industry in charge of building the dam. An industry that solely depends on long term projects to earn substantial revenue and has planned for construction is at halt by the partners may lead to higher costs when switching to other projects. This is because energy industries tend to be seen as mega scale meaning that its fixed and variable costs would already be very high in order to provide electricity for the general population. Moreover, the time and money that is placed into planning for the project is wasted especially when resources could be useful elsewhere.

Therefore, the inefficient use of resources always leads to higher costs and this may be a problem especially during partnerships because a project cannot move forward unless getting a confirmation and so costs increases every minute time is wasted.

Sources:

http://www.vancouversun.com/news/First+Nation+chiefs+stage+Site+showdown/10215965/story.html

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