"Ahead of a likely federal election, the Liberals committed to covering the vast majority of cost overruns for the controversial $13.1 billion megaproject, which has faced staunch opposition from local Indigenous communities and environmental organizations".
"Prime Minister Justin Trudeau dropped into Newfoundland and Labrador on Wednesday with a multibillion-dollar bailout package designed to beat down the soaring costs of the contentious Muskrat Falls hydroelectric project and avert a feared bankruptcy.
The agreement-in-principle is not yet official, but ahead of a likely election, Trudeau was clear his government was “prepared to commit” to two separate life-preservers totalling $5.2 billion for the struggling province the Liberals nearly swept in 2019’s election.
The bailout is approaching the total cost of overruns at Muskrat Falls, a megaproject that has faced numerous delays and opposition from local Indigenous peoples and environmental groups. Initially, Crown corporation Nalcor Energy expected the project to cost $7.4 billion all-in, but the price has since swelled to $13.1 billion and counting. It was the subject of a multi-year inquiry that found the megaproject was thoroughly, and perhaps criminally, mismanaged. Former premier Dwight Ball referred the inquiry report to the RCMP last year."