COVID-related delays increase costs of Nalcor’s Muskrat Falls project
The energy company has to pay roughly $300 million in additional debt-financing costs
ST. JOHN’S, NL — Delays related to software problems and to the COVID-19 pandemic are pushing up the cost of the Muskrat Falls hydroelectric project by hundreds of millions of dollars.
Province-owned Nalcor Energy said in a news release the project needs another $75 million in capital due to pandemic-related days.
Nalcor adds that because of those delays and of issues with software, the company has to pay roughly $300 million in additional debt-financing costs.
The company says COVID-19-related costs to the project were around $150 million, half of which was covered with funds in the capital budget.
Nalcor announced last week Muskrat Falls had reached a milestone after electricity began flowing for the first time from a power-generating unit.
The company says it will take roughly one more year than anticipated for the project to achieve full power.