Muskrat Falls Project

Rank 2020

4

Industry Sector: Energy

Range $12.7 billion

Specific Sector: Hydroelectric

Project Value: $12,700,000,000

Government Funds Involved: Public/Private

Funding Source: Public/Private

Location Newfoundland and Labrador

Estimated End Date of Substantial Completion: Transmission 2018; Generation 2019; Substantial Completion 2020

Nalcor Energy leads this development, which includes construction of an 824-megawatt hydroelectric generating facility at Muskrat Falls on the lower Churchill River in Labrador and more than 1,600 kilometres of associated transmission lines and infrastructure that will deliver electricity to Newfoundland and Labrador.

The Government of Newfoundland and Labrador sanctioned the Muskrat Falls Project in December 2012, and construction of the project began in January 2013. Construction has started as planned on all major work sites for the project, including Muskrat Falls, Soldiers Pond, Churchill Falls, the Strait of Belle Isle, and the transmission routes.

Once completed, the project will provide sustainable energy production for residential, commercial, and industrial growth throughout Newfoundland and Labrador in the coming decades.

In October, Nalcor Energy announced that all concrete for the Muskrat Falls civil works, 680,000 cubic metres, had been poured. The project is scheduled to reach substantial completion by the end of 2020.

Project Owner: Nalcor Energy; Emera (Labrador-Island Transmission Link)

Engineer: Nalcor Energy; SNC-Lavalin; Wood Group (consulting)

Contractor: Generation: Andritz Hydro Canada; Astaldi Canada; Barnard-Pennecon JV Transmission: GE Energy (formerly Alstom Grid Canada and Alstom Renewable Power Canada); Andritz Hydro Canada; H.J. O'Connell Construction; Valard Construction; Pomerleau

Other Key Players: IKC-ONE—Innu Kiewit Constructors: H.J. O’Connell, Neilson, and EBC Inc. (rock and overburden excavation); Hatch (engineering services); Golder; Lafarge and Holcim Canada (cement); EY (advising gov’t.); Aon (risk/insurance advisor to authority); KPMG (advisory services); EXP (quality control work); CRT Construction (subcontractor for concrete installation); Morrison Hershfield (code); AGAT Labs (analytical testing); Deloitte

Financiers and Banks: TD Securities and Goldman Sachs (co-lead arrangers)

Supplier Other: Lafarge and Holcim Canada (cement); GE (transformers, rotors, and stators); Mammoet; McKeil Marine; Canam Group

Legal: Cassels Brock & Blackwell (Government of Canada); Dentons (advisor to owner); Fasken Martineau DuMoulin (finance counsel to Nalcor); Gowling WLG (counsel to Emera); McCarthy Tétrault (TD Securities/Goldman Sachs); Borden Ladner Gervais (legal advisor)

Transmission Line Length (km): 1600

MW Generation Power: 824

Financing Detail: Project funding is derived from (a) $5 billion in Government of Canada guaranteed, long-term bonds issued in the public debt markets in December 2013; (b) equity contributions from the Government of Newfoundland & Labrador; and (c) equity contributions from Emera relating to their partnership interest in the Labrador–Island Link. In December 2012, the projects were sanctioned with the direct facilities capital cost of $6.2 billion plus financing costs to be capitalized during the period up to their in-service date. In June 2016, the direct facilities capital cost for the projects was updated. External market pressures, combined with strategic investments to enhance system reliability, operation, and productivity throughout construction, resulted in a cost forecast of $9.1 billion.

2019 Rank: 4

2018 Rank: 3

2017 Rank: 3

2016 Rank: 3

2015 Rank: 2

2014 Rank: 12 and 19

Municipal Funding Number: 0