February 14, 2022 Ottawa, Ontario Natural Resources Canada
The Government of Canada is committed to a healthy and clean future and an economy that works for everyone. The Lower Churchill projects will contribute effectively to regional electrification and decarbonization efforts in Atlantic Canada. Supporting this project, and others like it, is part of Canada's plan to address climate change while ensuring economic competitiveness and long-term prosperity.
To that end, the Minister of Labour, the Honourable Seamus O'Regan; on behalf of the Minister of Natural Resources, the Honourable Jonathan Wilkinson; accompanied by the Minister of Rural Economic Development, the Honourable Gudie Hutchings; Parliamentary Secretary to the Minister of Natural Resources and Parliamentary Secretary to the Minister of Northern Affairs, Yvonne Jones, announced that the Government of Canada and the Government of Newfoundland and Labrador have agreed to a term sheet for a $1-billion federal loan guarantee for the Muskrat Falls and Labrador Transmission Assets and a term sheet relating to the $1-billion Labrador-Island Link Investment.
The term sheets are a key next step in implementing the agreement in principle announced by Prime Minister Trudeau, Minister O'Regan, and Newfoundland and Labrador Premier Andrew Furey in July 2021 on the financial restructuring of the Lower Churchill projects. Financial restructuring will put the projects on a sound financial footing for the benefit of all Newfoundlanders and Labradorians.
The federal government is working closely with the Government of Newfoundland and Labrador and Nalcor Energy to implement the financial restructuring set out in the term sheets as soon as possible. The Government of Canada recognizes that the Innu Nation and the Government of Newfoundland and Labrador are committed to continued engagement on the projects and is encouraged to see that the two parties have agreed to a facilitated discussion process.
Clean energy initiatives such as the Lower Churchill projects will help Newfoundland and Labrador, Atlantic Canada and the entire country to fight climate change and phase out coal power while creating jobs and building a strong, resilient economy. The Government of Canada is committed to working collaboratively with provinces, territories and Indigenous Peoples to build a healthy and clean future and an economy that works for everyone.
