Loan Guarantee for the Lower Churchill River Projects

Nalcor Energy, a Newfoundland and Labrador Crown corporation, and Emera Inc., a Nova Scotia energy company, have requested federal financial support for the Lower Churchill River projects, which include:

• The Muskrat Falls Generating Station and the transmission lines connecting this facility to the existing Churchill Falls Generating Station and the future Gull Island Generating Station;
• The Labrador–Island Link; and
• The Maritime Link connecting Newfoundland and Nova Scotia.

On August 19, 2011, the Government of Canada signed a Memorandum of Agreement (MOA) demonstrating its commitment to provide support for these projects and issued a Request for Proposals on the Government Electronic Tendering Service (MERX) to seek financial advisors to undertake due diligence required for a loan guarantee. The financial advisors are currently working on the due diligence by conducting financial and risk analysis of these projects that will assist in the implementation of the MOA.