Canada hydropower project gets federal loan guarantee

Canada's 824 MW Muskrat Falls hydroelectric project moved forward as Prime Minister Stephen Harper announced a federal loan guarantee

Dec 3rd, 2012

Canada's 824 MW Muskrat Falls hydroelectric project moved forward as Prime Minister Stephen Harper announced a federal loan guarantee.

Support for the Muskrat Falls hydropower plant — promised by Harper through his election campaign last year — is included in a term sheet that guarantees up to $6.3 billion in debt over 35 to 40 years for the financing of the project.

The guarantee will be managed by Natural Resources Canada, with the government acting as an advisor to ensure that the support provided to the projects is financially responsible to Canadian taxpayers.

The $6.3 billion loan guarantee will lower borrowing costs for the $7.4 billion hydropower project, though Newfoundland and Labrador will have to make other arrangements for the $1.1 billion difference.

More in Home