Ottawa Forgives $844M Debt From Newfoundland And Labrador's Muskrat Falls
Breaking News

Ottawa Forgives $844M Debt From Newfoundland And Labrador’s Muskrat Falls

Reading Time: 2 minutes

Clean Energy to Strengthen the Economy and Communities in Newfoundland and Labrador

Investing in infrastructure and clean energy is key to building strong communities, and a more sustainable and resilient economy. As an important part of Atlantic Canada’s clean energy future, the Lower Churchill Projects will provide a reliable and long-term source of clean power for people in the Atlantic region, and especially in Newfoundland and Labrador.

The Prime Minister, Justin Trudeau, and the Premier of Newfoundland and Labrador, Andrew Furey, today announced measures to help ensure that the Lower Churchill Projects are financially sustainable. This is part of their shared commitment to electrification and clean energy for Newfoundlanders and Labradorians. Recognizing that the COVID-19 pandemic has further exacerbated construction challenges, these measures will include:

“We are working with Newfoundland and Labrador to ensure the financial sustainability and successful completion of the Lower Churchill Projects, and to advancing the Atlantic Loop. When we invest in clean, renewable energy, we are also making an investment in our environment, our people, and our economy.” The Rt. Hon. Justin Trudeau, Prime Minister of Canada

Ottawa Forgives $844M Debt From Newfoundland And Labrador's Muskrat Falls
  • Delaying debt and financing payments associated with the Lower Churchill Projects: The Government of Canada has temporarily waived certain financial obligations faced by the provincial Crown corporation Nalcor Energy, to help reduce immediate financial pressures on Newfoundland and Labrador.
  • Moving forward on a process for a renewed financial structure for the Lower Churchill Projects: The Government of Canada and the Government of Newfoundland and Labrador will continue to work together on options to ensure a financially sustainable long-term solution for Lower Churchill Projects, and identify opportunities to support electrification efforts in Newfoundland and Labrador.
  • Collaborating to study other clean energy projects: The Government of Canada will work with provinces to identify opportunities to support the Clean Power Roadmap for Atlantic Canada, including the Atlantic Loop.
  • Appointing a Senior Executive Advisor on the Lower Churchill Projects in Newfoundland and Labrador and electrification in the Atlantic region: In this role, Serge Dupont will help support, and develop recommendations on, the financial restructuring of the Lower Churchill Projects, and make progress on major electrification priorities to advance the Atlantic Loop.

“Working in partnership with the federal government, today we are ensuring that Newfoundland and Labrador is at the heart of delivering clean, renewable energy to other parts of Canada. Our collective actions are also easing the financial pressures on Newfoundlanders and Labradorians, and putting our province on a solid path towards a sustainable future.”
The Hon. Andrew Furey, Premier of Newfoundland and Labrador

Clean energy initiatives such as the Lower Churchill Projects and the Atlantic Loop can help Newfoundland and Labrador, Atlantic Canada, and the entire country to fight climate change and phase out coal power, while promoting economic competitiveness and prosperity. The Government of Canada is committed to working collaboratively with provinces and territories, and Indigenous peoples, to build a healthier and cleaner future, and an economy that works for everyone.

Image source Nalcor Energy

More great reading