Toronto Star

Ottawa endorses giant hydro loan

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HAPPY VALLEY-GOOSE BAY, N.L.— Prime Minister Stephen Harper has signed off on a long-awaited federal loan guarantee for the $7.4-billion Muskrat Falls hydroelect­ric project in Labrador. The federal backing, which Harper promised during last year’s election campaign, is expected to save the government­s of Newfoundla­nd and Labrador and Nova Scotia more than $1 billion in borrowing costs. The agreement signed Friday guarantees up to $6.3 billion in debt for the financing of the project for a period of 35 to 40 years. Newfoundla­nd Premier Kathy Dunderdale’s government has waited for the federal support before sanctionin­g Muskrat Falls. If it goes ahead, Muskrat Falls would be the largest public expenditur­e in Newfoundla­nd’s history. It is expected to begin generating power in 2017, and some of that electricit­y would flow to Nova Scotia through subsea cables. Opponents have said Dunderdale has not proven the case for Muskrat Falls, accusing her of expediting a project that could burden future generation­s with a heavy debt.

If it proceeds, Muskrat Falls would be capable of generating up to 824 megawatts of electricit­y, 170 megawatts of which would go to Nova Scotia annually for 35 years. That would serve about 10 per cent of that province’s power needs.

The developmen­t is a joint venture between Nalcor Energy, Newfoundla­nd and Labrador’s Crown utility company, and Nova Scotiabase­d private utility Emera.

 ?? PAUL DALY/THE CANADIAN PRESS ?? If it proceeds, the Muskrat Falls project on the Churchill River could generate up to 824 megawatts of electricit­y.
PAUL DALY/THE CANADIAN PRESS If it proceeds, the Muskrat Falls project on the Churchill River could generate up to 824 megawatts of electricit­y.
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