Muskrat Falls costs going up, project still on schedule: Nalcor

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Today, Nalcor CEO Ed Martin revealed that the costs for the Muskrat Falls megaproject are going up.

The new cost for the project is now supposed to be around $800 million over budget; the new total cost estimates for the Newfoundland and Labrador portion of the project is now $6.99 billion.

Martin said on the other hand, financing came in cheaper than expected, and that will mean about $300 million in savings.

Ever since the project was first announced by then-premier Danny Williams in 2010, the costs have steadily risen, as more engineering work was done and the project got closer to construction.

Martin said that an extremely busy economy, with lots of construction going on, is driving up costs.

Martin said they’ve gotten to a point where they're well underway at the site of the hydroelectric dam in Labrador, and they’re doing work across the island.

The project was originally slated to be finished by 2017.

According to today’s update, Nalcor is still on track to meet that deadline, with first power scheduled to start in 2017.

Premier Tom Marshall and Natural Resources Minister Derrick Dalley are scheduled to speak to the media later this afternoon about Nalcor’s update on Muskrat Falls.

 

 

 

Geographic location: Newfoundland and Labrador

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Recent comments

  • Sam
    June 26, 2014 - 20:39

    The costs keep going up as the viability of this fiasco keeps going down, yet we're still stuck with paying out a $600 thousand dollar salary per year for incompetent leadership at Nalcor. When is someone within the PC party going to step up to the plate and say enough is enough. Let Martin go and let someone look under the covers to let the people of this province know what is really going on with this disaster of a project. One thing is certain and that is if he says it's over by $800 mil, you can easily triple that amount if we had access to the real picture. There won't be a PC member left standing when this fiasco become a full reality and the fixed and low income people in the province have to absorb major increases in their hydro bill.

  • Anna
    June 26, 2014 - 14:19

    Why hasn't Ed Martin been fired by now? Why doesn't Nalcor bring in someone who would have knowledge about this extensive type of project, someone we could respect and believe?

    • anna dear
      June 26, 2014 - 19:58

      Mr. Martin was appointed by you know who - the same person who appoints the premier. Do you really expect the Board of Nalcor to deal with the problems at Nalcor - remember DARK NL and all the Nalcor failures there. no accountability in government - only secrecy.

  • Maurice E. Adams
    June 26, 2014 - 13:44

    $800 million overrun todate, but the prooject is only about 20% completed (perhaps less)

  • Wat da we know
    June 26, 2014 - 13:44

    Well we're not surprised and we also know that the final cost will only be known when MF is finished. That's in 31/2 years or so. We also know that the real costs will only start escalating not that construction is getting under way the estimates so far are just numbers on paper we need to wait till the real cost of labour and productivity hit home. And of course we know that Nalcor our so-called Statoil does not stand to lose a cent - all the cost overrun is paid solely by you and me! Just Fantastic isn't it - don't it feel great!

  • W Bagg
    June 26, 2014 - 13:28

    Let's just hope some company doesn' t decide to say that one of the contracts aren't profitable and calls Nick McGrath and gets his multi-million dollar bond back so the job then has to be re-tendered and costs increased.

  • guy incognito
    June 26, 2014 - 13:20

    Keep spinning it Ed. Ed Martin, Dunderdale, Kennedy, and of course King Danny......they will all be remembered in infamy...