Liberals, NDP criticize Muskrat Falls cost increase

Newfoundland and Labradors two opposition parties are expressing concern about the latest cost estimate for Muskrat Falls.

Weve always known this was an expensive project, Liberal MHA Andrew Parsons told reporters Thursday.

And what we have here now is an extremely expensive project. This is obviously bad news to the taxpayers of the province.

According to Nalcor Energy, the Newfoundland and Labrador portion of the hydro megaproject is now projected to cost a shade under $7 billion.

• Muskrat Falls costs rise to almost $7B

That compares to initialestimates of $5 billion when Muskrat Falls was announced less than four years ago.

Very disconcerting

The amount the people of this province will have to pay to build Muskrat Falls has increased 40 per cent a full $2 billion since this project was first announced, and $800 million in the year and a half since it was sanctioned and there is no steel up yet, NDP MHA George Murphy said in a newsrelease.

No building, no transmission towers, no power lines, and 10 per cent of the contracts have yet to be awarded. I find that very disconcerting.

Newfoundland and Labrador ratepayers will ultimately be responsible for that $7 billion through their electricity bills.

NalcorEnergy CEO Ed Martin told reporters Thursday that the Crown corporation is still "well within a comfortable envelope of where we expected to be" in terms of costs.

He said the typical consumer will pay an extra $8 per month because of the increase in construction costs.

Emera will pay for the $1.5-billion Maritime Link that will ship power to Nova Scotia.

While costs have risen, the project's timelines remain the same, withfirst power still expected to flow in 2017.