An environmental assessment of the proposed Muskrat Falls hydroelectric dam in Labrador is questioning the viability of the project.
The report by a joint federal-provincial review panel says Newfoundland and Labrador’s Crown utility, Nalcor Energy, has not justified the need for the project in energy and economic terms.
It says there are outstanding questions about the $6.2-billion project’s ability to deliver long-term financial benefits to the province.
The panel also concluded that the project would have several “significant adverse” environmental effects on aquatic and terrestrial environments.
The report comes a week after the federal government announced it would follow through on a promise to provide a loan guarantee for Muskrat Falls.
Nalcor Energy says it will respond to the report’s conclusions on Friday.
The review panel provides advice to the provincial and federal governments, which will make the final decision on the project’s approval.
To review the report on the Newfoundland Government website, click here
For executive summary, click here