Harper Government Celebrates Final Loan Guarantee for Lower Churchill Projects

News Release

Support from Federal Government to Build Infrastructure, Create Jobs and Promote Clean Energy

April 23, 2014
Ottawa
Natural Resources Canada

The Honourable Peter MacKay, Regional Minister for Nova Scotia and Minister of Justice and Attorney General of Canada, on behalf of the Honourable Greg Rickford, Canada’s Minister of Natural Resources, today highlighted the Government of Canada’s support for Emera’s Maritime Link project through a federal loan guarantee. The federal government’s loan guarantee, backed by Canada’s triple-A credit rating, has enabled Emera Inc. and its subsidiary, NSP Maritime Link Inc., to dramatically lower borrowing costs. Finalized in March, the guarantee applies up to $1.3 billion of debt for the Maritime Link project, securing projected savings of hundreds of millions in interest charges for ratepayers in Nova Scotia and Newfoundland and Labrador.

Together with the federal loan guarantee signed in December 2013 for the Nalcor Energy portion of the Lower Churchill projects in Newfoundland and Labrador, the guarantee for Maritime Link completes the commitment of the Government of Canada to ensuring the success of the projects and improving the environment and quality of life of Canadians in Atlantic Canada.

The Lower Churchill projects are a clear reminder of the crucial role natural resource development plays in creating jobs, growth and prosperity in every region of Canada.

Quick Facts

The Lower Churchill Projects will make a major contribution to meeting Atlantic Canada’s energy needs while reducing annual carbon dioxide emissions by up to 4.5 megatonnes per year.
The federal loan guarantees of $6.3 billion will lower the costs of borrowing for the proponents, with projected savings of over a billion dollars for ratepayers in Newfoundland and Labrador and Nova Scotia.
During the construction period, the projects will result in an average of $2.2 billion in income benefits for business and labour in Atlantic Canada.
Emera estimates that the construction of the Maritime Link will create an average of 300 jobs per year during the construction period in both provinces, with peak activity in 2016.

Quotes

“With these loan guarantees from the Federal Government, we are helping to ensure that ratepayers in Nova Scotia and Newfoundland and Labrador will save more than a billion dollars as the Lower Churchill projects are built. We know that important infrastructure projects such as these are game-changers for Atlantic Canada. They not only provide a source of cleaner, more abundant energy for the people of the region, but they also create jobs, strengthen growth and ensure our long-term prosperity.”

Peter MacKay
Federal Justice Minister, Attorney General of Canada and Regional Minister for Nova Scotia

“We appreciate the federal government’s support of the financing of this project through the loan guarantee. The loan guarantee provides savings to the project worth hundreds of millions of dollars which directly flow to ratepayers.”

Andrew Younger
Nova Scotia’s Energy Minister

“We thank the Government of Canada for its commitment to the Muskrat Falls Project by providing the federal loan guarantee and by recognizing its value as a nation-building clean energy development. The Muskrat Falls Project, including the Maritime Link, will provide Nova Scotia and Newfoundland and Labrador with clean, renewable energy to meet its greenhouse gas targets; and in return Nalcor Energy is receiving access to energy markets in the Maritimes and beyond. This is a great project for both provinces.”

Derrick Dalley
Newfoundland and Labrador’s Minister of Natural Resources

“Today is a great day for Nova Scotia electricity customers and the Maritime Link project. The finalization of the Federal Loan Guarantee provides the assurance of the AAA credit rating and will help save customers approximately $325 million dollars in financing costs over the life of the project.”

Chris Huskilson
President and CEO, Emera Inc.

Related Products

Backgrounder — The Lower Churchill Projects
Project Overview — Maritime Link

Contacts

Alexandra Lemieux
Office of the Minister
Natural Resources Canada
613-996-2007

Paloma Aguilar
Press Secretary
Office of the Minister of Justice
613-992-4621

Media Relations
Natural Resources Canada
Ottawa
613-992-4447

The general public may contact:

Mon.–Fri., 8:30 a.m.–4:30 p.m. EDT
Telephone: 613-995-0947
TTY: 613-996-4397
(teletype for the hearing-impaired)
E-mail: questions@nrcan.gc.ca

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Harper Government Celebrates Final Loan Guarantee for Lower Churchill Projects

News Release

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