Federal Minister of Natural Resources Jim Carr announced November 3 that the Government of Canada will provide additional loan guarantee support for the Lower Churchill projects in Newfoundland and Labrador. Canada will guarantee up to an additional $2.9 billion in debt for the portion of the Lower Churchill projects led by Newfoundland and Labrador Crown corporation Nalcor Energy.
The specific conditions of the support were to be negotiated with the Government of Newfoundland and Labrador and Nalcor Energy in the near future, with provisions for commercial terms, including a guarantee fee of 0.5 percent above the federal rate.
The Government of Canada will also work with the province to provide immediate relief for its escrow account obligations as well as an extension to the timeline for debt repayment.