Canada government grants loan guarantee to Muskrat Falls hydroelectric project
The 824MW Muskrat Falls hydroelectric project in Canada has secured a loan guarantee for about $6.3 billion, from the federal government.
The Muskrat Falls project in the province of Newfoundland and Labrador (N and L) is being planned over the Churchill River and is estimated to cost $7.4 billion. The project is being developed by N and L's energy company Nalcor and Nova Scotia's Emera.
The loan guarantee, which will be managed by Natural Resources Canada, will include the project's generation station, and three transmission links -- the Labrador transmission interconnection, and the Labrador- Newfoundland-Nova Scotia links.
The Canadian government will play an advisory role over the guarantee period of 35 to 40 years.
Canada Prime Minister Stephen Harper, who announced the loan guarantee, said that the loan will not cost the tax payers in the long term.
Meanwhile, the provincial government of Nova Scotia has said that it has appointed a company to assess the viability of the Muskrat Falls hydroelectric project as against other energy options.