‹ Infrastructure

Muskrat Falls Hydro - $6.2 billion project

November 04, 2011

The governments of Canada, Newfoundland and Labrador and Nova Scotia have signed an tentative agreement for the $6.2 billion development of the Muskrat Falls hydro project in Labrador. Ottawa will provide a loan guarantee for some of the project costs. The project components will consist of:

The project is supported by the Innu Nation and will provide employment for 1,150 people in Labrador each year during the construction phase. Total project direct employment is expected to reach almost 10,000 person years of employment.

The project will start this year and the electrons will flow by 2017-2018. This project has a very long term life.

Commentary

This project is a game changer for Newfoundland and Labrador, spurring substantial economic activity throughout this decade. Newfoundland has the highest unemployment rate in Canada, so the extra jobs, taxes and indirect effects will be welcome. It will interesting to see if the hiring process is open and transparent for this project.

Sources

NRE 26-Aug-11 and 10-Oct-11
”Feds sign tentative agreement …”, Whitehorse Star 19-Aug-11, p.21.
http://www.gov.nl.ca/lowerchurchillproject/default.htm including graphic below