[ST. JOHN'S, NL] — A deal to build the Muskrat Falls hydroelectric megaproject in Labrador won't be reached by a deadline set for Tuesday.
The province's Crown energy company, Nalcor, and Nova Scotia private utility Emera were to have reached a deal by Jan. 31 after extending an original deadline of Nov. 30.
Nalcor CEO Ed Martin says a deal is close but internal reviews and due diligence are ongoing, and a new deadline will not be set.
Under conditions of a term sheet announced in November 2010, Nalcor and Emera would share costs of the $6.2-billion project.
Power harnessed from the lower Churchill River would reach Newfoundland and then Nova Scotia using subsea cables.
Opposition politicians in Newfoundland questioned whether the project was on track after Nalcor and Emera missed the November deadline.
Critics have also asked why a promised federal loan guarantee or financial equivalent for the project has not been finalized.
