Canada and Newfoundland and Labrador Sign Financial Restructuring Term Sheets for the Lower Churchill Projects

OTTAWA, ON, Feb. 14, 2022 /CNW Telbec/ - The Government of Canada is committed to a healthy and clean future and an economy that works for everyone. The Lower Churchill projects will contribute effectively to regional electrification and decarbonization efforts in Atlantic Canada. Supporting this project, and others like it, is part of Canada's plan to address climate change while ensuring economic competitiveness and long-term prosperity.

To that end, the Minister of Labour, the Honourable Seamus O'Regan; on behalf of the Minister of Natural Resources, the Honourable Jonathan Wilkinson; accompanied by the Minister of Rural Economic Development, the Honourable Gudie Hutchings; Parliamentary Secretary to the Minister of Natural Resources and Parliamentary Secretary to the Minister of Northern Affairs, Yvonne Jones, announced that the Government of Canada and the Government of Newfoundland and Labrador have agreed to a term sheet for a $1-billion federal loan guarantee for the Muskrat Falls and Labrador Transmission Assets and a term sheet relating to the $1-billion Labrador–Island Link Investment.

The term sheets are a key next step in implementing the agreement in principle announced by Prime Minister Trudeau, Minister O'Regan, and Newfoundland and Labrador Premier Andrew Furey in July 2021 on the financial restructuring of the Lower Churchill projects. Financial restructuring will put the projects on a sound financial footing for the benefit of all Newfoundlanders and Labradorians.

The federal government is working closely with the Government of Newfoundland and Labrador and Nalcor Energy to implement the financial restructuring set out in the term sheets as soon as possible. The Government of Canada recognizes that the Innu Nation and the Government of Newfoundland and Labrador are committed to continued engagement on the projects and is encouraged to see that the two parties have agreed to a facilitated discussion process.

Clean energy initiatives such as the Lower Churchill projects will help Newfoundland and Labrador, Atlantic Canada and the entire country to fight climate change and phase out coal power while creating jobs and building a strong, resilient economy. The Government of Canada is committed to working collaboratively with provinces, territories and Indigenous Peoples to build a healthy and clean future and an economy that works for everyone.

Quotes

"Today's announcement highlights what can be achieved when federal and provincial governments collaborate on shared priorities that will help us achieve our net-zero goals while supporting clean power in communities across the Atlantic region. As we move forward, the Government of Canada will continue to work with our provincial, territorial and Indigenous partners toward a sustainable future for Canadians."

Jonathan Wilkinson
Minister of Natural Resources

"The deal to put the Lower Churchill Projects on sound financial footing is moving ahead, to the benefit of all Newfoundlanders and Labradorians. Our hydroelectric resources can help power Atlantic Canada, electrify our regional economy and lead the fight against climate change. This deal positions us to do just that."

The Honourable Seamus O'Regan Jr.
Minister of Labour and Member of Parliament for St. John's South-Mount Pearl

"Supporting the Lower Churchill Projects will provide a reliable and long-term source of clean power for people in Atlantic Canada. By working together, both governments of Canada and Newfoundland and Labrador are helping to promote our province's economic resiliency. Supporting this project, and others like it, will not only contribute to Canada's plan to address climate change and affordability, but it will also have a positive impact and a lasting effect for Newfoundlanders and Labradorians for generations to come."

The Honourable Gudie Hutchings
Minister of Rural Economic Development

"Today marks a turning point to ensuring the success of the Lower Churchill Project. This agreement will provide for the financial stability of the project and benefit all Newfoundlanders and Labradorians. Clean energy is key in Canada's goal to fight climate change and reduce carbon emissions, but it's also key to a strong economic future for NL. 

Yvonne Jones
Parliamentary Secretary to the Minister of Natural Resources
and Parliamentary Secretary to the Minister of Northern Affairs

"This is an historic deal for the people of Newfoundland and Labrador and for all Canadians. It represents the strength of our federation and the important things we can achieve by working together. We can all breathe a sigh of relief knowing our province will now have affordable power rates once Muskrat Falls comes online."

The Honourable Andrew Furey
Premier of Newfoundland and Labrador

Quick Facts

• The Lower Churchill projects are a set of hydroelectric generation and transmission projects that include the Muskrat Falls Generating Station on the Churchill River in Labrador, the Labrador Transmission Assets, the Labrador–Island Link that connects to the island of Newfoundland and the Maritime Link that connects to Nova Scotia.
• The $2-billion financial restructuring announced on July 28, 2021, and advanced by the term sheets announced today will put the Lower Churchill projects on sound financial footing for the benefit of all Newfoundlanders and Labradorians.

Related Links

• Securing a strong future for Newfoundland and Labrador
• Clean energy to strengthen the economy and communities in Newfoundland and Labrador
• Government of Canada Announces Negotiations on Financial Restructuring of Lower Churchill Projects
• Lower Churchill Project

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SOURCE Natural Resources Canada

Natural Resources Canada, Media Relations, 343-292-6100, [email protected]; Ian Cameron, Director of Communications, Office of the Minister of Natural Resources, 613-447-3488, [email protected]