Provincial governments finalize MOU for Lower Churchill

29 November 2011


The agreement identifies the employment and business benefits for each province associated with the construction phase of the Lower Churchill Project, which includes construction employment on the hydroelectric generation facilities at Muskrat Falls and Gull Island, the Labrador-Island Transmission Link, and the Maritime Link.

The Lower Churchill Construction Projects Benefits Strategy between Nalcor Energy and the Government of Newfoundland and Labrador released in July 2010 outlines a construction hiring protocol for the generating stations and transmission link to the Island. The protocol requires that the province first honour commitments made to Aboriginal groups through any signed impacts and benefits agreements. After these commitments are met, first consideration for employment will be given to qualified residents of Newfoundland and Labrador.

In a statement, the government of Newfoundland and Labrador said the development of Muskrat Falls will create significant social, employment, income, and taxation benefits for the province, as well as the Atlantic region and Canada as a whole. Peak direct employment in the province will be approximately 2700 people in 2013, and will generate more than $1.4B in total income for labour and business. The project will generate some $210M in provincial tax revenues, plus some $525M in federal tax revenues.

In a statement released following the signing of the MOU, the governments said they are committed to the Muskrat Falls hydroelectric project, and are continuing to work in collaboration to complete a loan guarantee.


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