Ottawa pledges loan guarantee to Newfoundland power projects

Fri Nov 30, 2012 1:59pm EST
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OTTAWA Nov 30 (Reuters) - Canada's federal government will provide a loan guarantee of up to C$6.3 billion ($6.3 billion) for the Lower Churchill hydro-electric projects in the Atlantic province of Newfoundland and Labrador, Prime Minister Stephen Harper said on Friday.

The loan guarantee is designed to help finance the Muskrat Falls hydro-electric generation station and three transmission projects, lowering the borrowing costs of the projects and resulting in lower electricity rates for residents.

In November 2010, Newfoundland's government-owned Nalcor Energy and Nova Scotia-based Emera Inc announced plans to develop the projects at an estimated total cost of C$7.4 billion.