How Ottawa helped Newfoundland build the multibillion dollar fiasco that is Muskrat Falls GlobeDebate
The construction site of the hydroelectric facility at Muskrat Falls, Newfoundland and Labrador is seen on July 14, 2015.The financial disaster that is the Muskrat Falls hydroelectric project has many authors. The most important may be the Stephen Harper government.
A decade later, Muskrat Falls has become a kind of infrastructure how-not-to guide. It is billions of dollars over budget, and it will take years to pay the bill – starting with the federal government’sAt inception, oversight of Muskrat Falls was given to Nalcor, the Crown corporation Newfoundland created to manage the province’s energy assets. Nalcor had no experience with such a project.
Mr. Harper, in the 2011 election, promised Newfoundland his support. In late 2012, Ottawa provided a $5-billion loan guarantee. A few weeks later, Muskrat Falls officiallyBy 2016, costs had surged to $11.4-billion. The Trudeau government threw some more good money after bad, upping the federal loan guarantee by another $2.9-billion.Muskrat Falls a “boondoggle” that was too big for Newfoundland’s needs. “It was a gamble. And it has gone against us.
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