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loan guarantee

Loan guarantee announcement criticized

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A tentative deal that would see Ottawa provide a loan guarantee for the proposed $6.2-billion Muskrat Falls hydroelectric project in Labrador was critized heavily by the provincial NDP and Liberal parties. The deal is merely “an agreement to agree”, shrugged NDP Leader Lorraine Michael, who wondered aloud what has happened since Harper committed in March to back Muskrat Falls during the federal election campaign. “Work that we thought was happening in actual fact wasn’t happening,” Michael said in an interview. “We were led to believe by the premier that this kind of work was actually going on.” Provincial Liberal Leader Kevin Aylward said he too wondered why more work on the deal hasn’t been done yet. “This is not a legally binding offer and the Harper government can still back out of it,” Aylward said in a statement. “It’s no wonder Premier Kathy Dunderdale didn’t show up for the press…

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Muskrat Falls loan guarantee announced today

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What is being called a “major” announcement will be made this morning involving all the major players in the Muskrat Falls hydro development – Federal ministers, provincial ministers from Nova Scotia, and representatives from both Nalcor and Emera. The announcement is being billed as a “clean energy for Atlantic Canada” initiative, and is taking place at 9:00 this morning at Atlantic Place. The historic announcement means a much cheaper development for all involved parties; a loan guarantee on the proposed $6.2 billion project essentially lets the provincial government borrow money using the Federal government’s credit rating to reduce the interest paid on said loans. The loan guarantee would provide significant savings throughout the course of the project’s development. Stay tuned to TheIndependent.ca for pictures of the new conference. Source: VOCM

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Muskrat Falls loan guarantee close to reality

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CBC is reporting that the federal government will make an announcement on Friday about a loan guarantee for the proposed Muskrat Falls hydroelectric project. Prime Minister Stephen Harper promised the federal government would give Newfoundland and Labrador a loan guarantee when he was campaigning in the province before last May’s federal election – and there has been no indication to the contrary since. A loan guarantee on the proposed $6.2 billion project essentially lets the provincial government borrow money using the Federal government’s credit rating to reduce the interest paid on said loans. The loan guarantee would provide significant savings throughout the course of the project’s development. Source: CBC

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Loan guarantee for Lower Churchill could be coming soon

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A federal loan guarantee to develop the Lower Churchill hydroelectric project could be just around the corner. Premier Kathy Dunderdale says that Prime Minister Stephen Harper has proposed conditions for the loan guarantee, all of which will be met. Dunderdale notes that Harper’s questions about Muskrat Falls focused mostly on the economics of the project. She expects a loan guarantee to be achieved soon. Harper arrives in the province tomorrow, at which time Dunderdale hopes to meet with him to discuss Muskrat Falls. Meanwhile, the provincial Liberals accuse the government of underestimating the construction costs of developing the project — and overestimating the demand for electricity. Leader Yvonne Jones scoffs at government estimates which suggest that power use will rise by about a third over the next six years.

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