In an echo of 2002, the NDP government unveiled plans Friday for a major industrial development at Belle Plaine, Sask.

Five years ago, Premier Lorne Calvert held a sod-turning at Belle Plaine, west of Regina, for what was going to be three ethanol plants built by Broe Industries. The plants were never built.

On Friday, the government said it had an even bigger project to announce. It and TransCanada Corp. will spend up to $26 million each for the engineering design of a proposed "polygeneration" plant.

The plant, which could cost $4 billion to build, would use petroleum coke to make hydrogen, nitrogen, steam and carbon dioxide for fertilizer production and for enhanced oil recovery.

If TransCanada decides to build it, it will repay the $26 million to the Saskatchewan government. If the project doesn't get the green light, the $26 million won't have to be repaid.

The announcement comes days before a possible election call. Calvert is widely expected to drop the writ later this month.

After the last provincial election, the NDP said the deal with Broe Industries in Belle Plaine wasn't going to proceed.