The Dexter government has taken the next step forward in the Muskrat Falls hydroelectric project.
In order for Nova Scotia Power’s parent company Emera to access loans and qualify for a $100-million federal loan guarantee, the province has signed paperwork promising not to change the legislation or regulations around the deal until after the financing closes.
Premier Darrell Dexter says if the province breaks the deal, which he says it won’t, it will become liable for losses.
“Over that period of time, what we have said is that we will not change the regulatory rules,” said Dexter. “And of course, the only way that that’s effective is if you put in a clause that also says that if you do it, and there’s some loss that’s suffered to the company as a result of that, there could be a claim maid.”
The province also signed an agreement with Emera, the Newfoundland government and its crown-owned utility Nalcor Energy about how they’ll work together to meet the conditions of the federal loan guarantee.