Nunavut regulator approves Arctic naval facility

Nunavut regulators have given the OKto the proposedNanisivikNaval Facility near Arctic Bay.

The Nunavut Impact Review Board says the project can go ahead without a full environmental review butthe Department of National Defence mustfulfill 38 terms and conditions, and 24 other requirementsaimed at minimizing the impact on Arctic Bay's municipal water system and waste management, and wildlife.

The decision also lays out detailed monitoring and reporting procedures.

Prime Minister Stephen Harper first announced the project in 2007.It's to be a deep-water refuelling port for Arctic offshore patrol and Coast Guard ships.

Last year, plans for the project were significantly scaled back but the estimated cost has swelled to $116 millionfrom the original $100 million estimate.

Construction is expectedto begin next year.The facility should be operational by 2016.

The federal ministers of Northern Developmentand National Defence still need to authorize the NIRB's decision.