This is Part I of a series on the financing of Muskrat Falls
and will focus on the 1150 km transmission line from Muskrat Falls, across the Strait of Belle Isle, and down the Island to Soldiers Pond, outside of St. John’s. Part
II will deal with the financing of the generation component. We will refer to
the line as the Labrador Island Link (LIL), which is the only high voltage
direct current (HVDC) line in the province. It is owned jointly by Emera and by
Nalcor.
The LIL’s direct costs, not including financing costs during
construction, amount to $3.7 B of the $10.1 B direct costs of the LIL and the
generation assets combined, representing 37% of the capital assets which
comprise the NL components of Muskrat Falls. Cost of financing during
construction brings the total LIL cost to $4,959 or 39% of the overall $12.7
billion estimated cost.
