Wednesday, November 26th0.1°C
23286
23372

Cost of Muskrat Falls project jumps by $800 million for Nalcor Energy

ST. JOHN'S, N.L. - The cost of building the Muskrat Falls hydroelectric project in Labrador has risen by nearly $800 million for Nalcor Energy with the price tag now forecast at just under $7 billion.

Despite the higher capital cost of the project, Nalcor president Ed Martin says it is still the right long-term energy supply for Newfoundland and Labrador.

The Crown-owned company is blaming the increase on higher construction costs because of competition in the industry, and additional spending to improve the system's reliability and operation.

The joint project with Nova Scotia utility Emera (TSX:EMA) would bring power from Muskrat Falls to the island of Newfoundland and on to Nova Scotia through a complex system of overland transmission and subsea cables.

Nalcor's share of the project was $6.2 billion, but is now estimated at $6.99 billion.

The total cost estimate for the project now stands at about $8.5 billion, with Emera spending $1.5 billion on the subsea cable between the two provinces.

Martin said over the life of Muskrat Falls, it will bring in more than $30 billion in revenue.

"This will provide a substantial benefit for all Newfoundlanders and Labradorians," Martin said in a news release.

Martin has previously said the goal of providing power from the project by 2017 could also be delayed.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.88840.00
Gold1196.80-0.2999
Oil74.06-0.03
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744


24241

FEATURED Property
21109461135c Leathead Road
4 bedrooms 2 baths
$172,700
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24220

24231


Member of BC Press Council


24018