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COVID-related delays increase costs of Nalcor’s Muskrat Falls project

Energy company has to pay roughly $300 million in additional debt-financing costs.

September 28, 2020   by CP STAFF

ST. JOHN’S, NL — Delays related to software problems and to the COVID-19 pandemic are pushing up the cost of the Muskrat Falls hydroelectric project by hundreds of millions of dollars.

Province-owned Nalcor Energy said in a news release the project needs another $75 million in capital due to pandemic-related days.

Nalcor adds that because of those delays and of issues with software, the company has to pay roughly $300 million in additional debt-financing costs.

The company says COVID-19-related costs to the project were around $150 million, half of which was covered with funds in the capital budget.

Nalcor announced last week Muskrat Falls had reached a milestone after electricity began flowing for the first time from a power-generating unit.

The company says it will take roughly one more year than anticipated for the project to achieve full power.

 


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