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.