Manitoba Hydro is developing a new 695 megawatt generating station in partnership with four northern Cree Nations.

The $5.6 billion dollar project is called the Keeyask Generating Station. It will sit along the Nelson River about 60 km downstream from Split Lake and approximately 35 km west of Gillam.

The Keeyask Cree Nations include: Tataskweyak Cree Nation, War Lake First Nation, Fox Lake Cree Nation and York Factory First Nation.

"I am very pleased that Manitoba Hydro will move forward with the Keeyask Cree Nations to expand Manitoba's reliable supply of clean, renewable hydro power," stated Premier Greg Selinger in a press release. "Keeyask adds to Manitoba's reputation as a leader in innovative partnerships with Aboriginal communities to develop sustainable hydropower projects."

Selinger said the partnership will benefit the Keeyask Cree Nations and northern Manitobans in terms of business opportunities, jobs and training.

"Manitoba Hydro's approach today to developing new generation facilities in a close working relationship with Aboriginal communities ensures local people share in the immediate and long-term benefits," said Bob Brennan, President and CEO, Manitoba Hydro.

The partnership between the four Cree Nations and Manitoba Hydro was formalized in 2009. Construction, business activities and the operation of the generating station will be co-managed. The Keeyask Cree Nations can own up to 25 percent of the partnership, with Manitoba Hydro owning the rest.

"York Factory has long taken the view that there cannot be further hydroelectric development in northern Manitoba without the active participation of the First Nation peoples most directly affected," said Chief Louisa Constant. "We wish for a better future for our First Nation and we have determined that participating in Keeyask is a benefit for our people."

Infrastructure construction will begin within weeks. It will give about 200 people work over a three year period. Workers will build a 25 km access road to the Keeyask site, as well as camp facilities to accommodate the crew. Provincial Road 280 will also be undergoing a $27.8 million upgrade.

Before construction of the generating station can begin, several regulatory reviews, licensing processes and the finalization of the environment impact assessment must be completed. Construction will provide more than 4000 people with employment over seven years.