The proposed Muskrat Falls hydroelectric project in Labrador is expected to clear an important hurdle today.
Sources indicate Prime Minister Stephen Harper’s trip to a military base in Labrador this afternoon will outline details of a federal loan guarantee for the mega project.
Premiers Kathy Dunderdale of Newfoundland and Labrador and Darrell Dexter of Nova Scotia are also making the trip to 5 Wing Goose Bay.
The federal government has long promised a federal loan guarantee or financial equivalent and it has been working out the details for months.
The move is expected to shave hundreds of millions of dollars off the total cost of the project, which is expected to exceed 7.4 billion dollars.
Power from Muskrat Falls would be brought to the island of Newfoundland and then to Nova Scotia through a sub-sea link.