August 24, 2017
For Immediate Release

Is the Liberal Government Hiding the Muskrat Falls Loan Guarantee Term Sheet?

Keith Hutchings, Natural Resources Critic for the Official Opposition, is asking the Minister of Natural Resources to release the Muskrat Falls loan guarantee term sheet immediately.

“In recent months, the CEO of Nalcor, the Premier and the Minister of Natural Resources have made comments which imply that the loan guarantee is signed. Yet they have not posted a term sheet online. It is time for the Liberal government to be transparent with the people of the province and post the details of the extended loan guarantee online – just like our administration did in 2012,” said Hutchings.

Hutchings has written to Minister Coady, asking her to release the signed term sheet for the extended loan guarantee.

“Despite the Premier announcing the additional $2.9 billion loan guarantee for the Muskrat Falls project on November 3, 2016, the Federal Minister of Natural Resources wrote Minister Coady seven days later – on November 10th, 2016 – to outline the Government of Canada’s position within the negotiations. Through an Access to Information request, we know that in this letter, the federal government asked for an ‘annual fee of at least 0.5% of the total additional debt that is guaranteed’ to be paid to the federal government. This could mean that our province or Nalcor would have to pay the federal government over $14.5 million a year just to guarantee the additional debt. Through this same Access to Information request, we also know that the federal government had three other principles which they were bringing into negotiations on the loan guarantee, but these were redacted.‎”

“The fact that the Liberals have not made the term sheet publicly available is concerning, given that we know that the federal government has asked the province to pay for the guarantee. What else has the federal government asked for in negotiations? What has the provincial government signed on to? The Liberal government has a pattern of giving away our natural resource benefits and not standing up for this province. I am concerned that this may have happened again,” said Hutchings.

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Media Contact:
Heather MacLean, Director of Operations and Communications
Office of the Official Opposition
(709) 729 6105, heathermaclean@gov.nl.ca