Italy raises Muskrat Falls concerns with Trudeau at G7

Italian Prime Minister Matteo Renzi approached Prime Minister Justin Trudeau with concerns about the status of the Muskrat Falls project during an informal chat between the two leaders at last week'sG7 summit in Japan.

Renzi's country has an interest in the project, as the Italian multinational Astaldi is the main contractor on a job that is behindschedule and over budget.

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Stan Marshall, the new CEO of Nalcor, recently told reporters that he planned to meet with Astaldi to discuss the construction problems and even suggested the company could be removed from the project.

Trudeau's office confirms Renzi raised the issue during a cocktail reception on the first day of the May 26-27 summit. A spokesperson says the two leaders had a brief chat about the situation and committed to looking into it.

The federal government has underwritten much of the debt required to finance the multi-billion dollar hydro project. In 2012, former Prime Minister Stephen Harper provided a loan guarantee of up to $6.4-billion for the project.

Astaldi was hired to do most of the major work on the dam. However, the company is behind schedule and there have been negotiations to get the project back on track.

"The Astaldi situation is very serious," Marshall said during a May 13 conference call.

Marshall said his first preference was to resolve the issues with the Italian company. But he said replacing Astaldi was an option.

"We have an issue with them, we will hold discussions with them and hopefully those can be resolved, but I can't control what Astaldi does," said Marshall.

"We have to prepare for the eventuality that something happens to them, or that they need to be replaced, or walk off the site, who knows."