A $500-million hydro project under development for Iqaluit has opponents in a community that lies approximately 245 kilometres to the northeast of Nunavut’s capital city.

The proposed plant, backed by Nunavut Nukkiksautiit Corp., is one of Nunavut’s two federally anointed “major projects,” which means government officials are working to “fast track” it through regulatory approvals.

If approved, the 50-metre-high dam would be built along the Kuugaluk River, about 60 kilometres northeast of Iqaluit, with the goal of it being completed by 2030 – three years sooner than initially estimated.

But leaders in Pangnirtung are concerned that damming the south-flowing Kuugaluk River would cause water levels to rise in their hamlet of about 1,500 people.

Pangnirtung sits along the shore of Pangnirtung Fiord, one of several fiords that make up the northern coast of Cumberland Sound.

In a March letter, the Hamlet of Pangnirtung’s council opposed the project, saying it “exclusively” benefits Iqaluit.

“There will be a potential impact on the residential and commercial buildings and infrastructure of the hamlet close to the waterfront, as well as an old cemetery, which will be affected by potentially higher water levels of the Pangnirtung Fiord because of this project,” the letter reads.

Representatives from Nunavut Nukkiksautiit Corp. disagree with this assessment.

“The proposed project would not change the volume of water flowing through the river into Cumberland Sound – it would make the flow more consistent than the seasonally-variable flows we see today,” wrote Jess Puddister, spokesperson for the Qikiqtani Inuit Association-owned Nunavut Nukkiksautiit Corp., in an email Friday.

“Therefore, the proposed project is not anticipated to affect local sea levels.”

Regardless, Pangnirtung MLA Johnny Mike expressed displeasure in the legislative assembly in May that the project was advancing the project without consultation with Pangnirtung residents.

“Before the advent of Nunavut we used to have decisions made in the community from outside community,” Mike said. “We have seen this reoccurring this past year.”

In a written response from March, QIA president Olayuk Akesuk called Mike’s statement “inaccurate,” adding that QIA and Nunavut Nukkiksautiit Corp. leadership have participated in multiple consultations in Pangnirtung and are planning more.

Since March 2025, Nunavut Nukkiksautiit Corp. has hosted a total of six targeted engagement sessions with the Pangnirtung Hunters and Trappers Organization and hamlet council, along with two public town halls, Puddister said.

“You have an opportunity to shape this project and to guide how your community could benefit from a project that stands to see millions of dollars invested in community priorities,” Akesuk said.

The federal government is expected to provide most of the funding for the proposed hydro plant and has already allocated $26 million for studies.

If completed, it would be the territory’s first hydroelectric plant. It is estimated to generate 15 megawatts, more than enough electricity for Iqaluit’s current needs. It would be expected to be operational for approximately 100 years.