Federal government officially commits to Muskrat Falls

“It will grow our economy and our status as an energy superpower,” Natural Resources Minister Joe Oliver said during an announcement this morning at Atlantic Place in St. John’s.

The Federal government today committed through a Memorandum of Understanding to provide a loan guarantee for Newfoundland and Labrador’s Muskrat Falls project. The loan guarantee – which essentially allows the province to lean on Canada’s credit rating when borrowing – will save the $6.2 billion project hundreds of millions of dollars in interest.

“The projects are great news for Canada. It is estimated that they will generate total employment of 18,400 person-years in Newfoundland and Labrador and 47,800 person-years across Canada. They will provide a significant boost to the economy while reducing greenhouse gas emissions” said Oliver.

Photos courtesy of Susan Morrissey Wyse

“Our government knows that a strong Atlantic Gateway is key to the economic prosperity of the entire Atlantic region,’’ said Minister Peter MacKay in a statement. The Federal government cited the fact the project is a regional effort as one of the reasons why it was willing to support it; in exchange for building the required transmission lines between the island of Newfoundland and Nova Scotia, that province will receive 20% of the energy. Another 20% of the energy will be available for sale to other markets – likely the United States.

“Today’s agreement is an important step to realizing the full potential of one of North America’s most ambitious clean energy projects,” said Federal Minister Peter Penashue. “Coming from Labrador, I know that these projects are of great importance to Newfoundlanders and Labradorians. They will generate up to $3.5 billion in economic benefits.”

Take a look at the Memorandum of Understanding yourself below. Leave your thoughts and opinions in the comments section below.

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