Ottawa finalizes $1.3B loan guarantee for Maritime Link project
170-kilometre subsea link would supply power from massive Muskrat Falls project to Nova Scotia
OTTAWA—The federal government has finalized the last of its loan guarantees for Emera Inc.’s massive Maritime Link, a project that would ship hydroelectricity to Nova Scotia from the Muskrat Falls project in Newfoundland and Labrador.
The latest loan guarantee applies as much as $1.3-billion in debt for the 170-kilometre subsea link between southwestern Newfoundland and Cape Breton.
Together with the federal loan guarantee signed in December 2013 for Nalcor Energy’s Muskrat Falls brings the total guarantees from Ottawa to $6.3-billion.
Emera president and CEO Mark Huskilson said in a statement that the guarantee will save roughly $325-million in financing costs over the life of the project.
Under the 35-year deal between Emera and Nalcor, Newfoundland and Labrador’s Crown energy company, Nova Scotia will be supplied with 20 per cent of the energy from Muskrat Falls in exchange for paying 20 per cent of the costs of the $7.7-billion project.
Taxpayers in Nova Scotia would pay for the Maritime Link through their electricity bills.
The cost of the Maritime Link is estimated at $1.5-billion.
Construction is already underway on the Muskrat Falls project, which Emera and Nalcor hope to have in operation in 2017.
—With files from The Canadian Press