Nalcor doing better job controlling Muskrat Falls costs, risk: EY report

A report by the accounting firm hired to evaluate how work is progressing on themuch-criticized Muskrat Falls project says Nalcor is doing a better job of keeping an eye on the cost, timetable and associated risks.

The EY report was commissioned by the Liberal government shortly after the 2015 Newfoundland and Labrador election, and made public Thursday.

• Click here to read full EY report

An interim report released in April2016 pointed to a number of cost overruns on the hydro project and concluded the project was significantly behind schedule, calling for more oversight by the company andgovernment.

• Muskrat Falls costs up again, project further behind schedule

Thursday's follow-upreport said the project still has a high level of risk because of the complexity of thework and the approaching winter.

However, it said changes have been made to avoid huge departures from the expected budget and schedule.

Natural Resources Minister Siobhan Coady called the report "reassuring" and said it shows the project is being better managed.

"It's good to hear from an independent source that things are progressing, and that that there has been substantive progress," she said.

In June, the CEO of Nalcor, Stan Marshall, said the new cost estimate for the Muskrat Falls project was $12.7 billion,including financing,comparing the contract to the notorious 1969 UpperChurchill deal with Quebec.

The original estimate for the capital cost of the project was about $6 billion.

EY said it gave the June forecast "due consideration" butdid not assess the reasonableness of the estimate because that was outside the scope of its work.

It's estimatedthe project is 78 per cent completed.

According to EY, Nalcor has identified three risksit did not have a contingency for: significant protest unrest, vegetation and soil removaland unforeseendirectives from government.

The EY reports have cost Newfoundland and Labrador taxpayers $2.2 million.

• Muskrat Falls oversight committee skips reports, breaches mandate