Newfoundland and Nova Scotia’s premiers, Danny Williams and Darrell Dexter, respectively, have announced a deal on Thursday to develop the Lower Churchill River hydroelectric megaproject. The $6.2- billion, 35 year deal is expecting to have power flowing by late 2016, providing a more stable price of electricity to citizens of both provinces.

Proving to be the largest current energy project in North America, the plan proposes to generate power at Muskrat Falls in the Lower Churchill River. Electricity will first flow to Newfoundland and then be redirected 180 kilometres to Nova Scotia via a $1.2-billion underwater cable.

Nalcor, Newfoundland and Labrador’s energy corporation, and Emera Inc., Nova Scotia’s parent company, have agreed to partner and fuel the project. The deal suggests that Nalcor will incur the cost of the Muskrat Falls development while both companies will share funds to the subsea power lines. The provinces are currently awaiting confirmation of government funding to support the project.

Despite criticism being received by various stakeholders, Dexter welcomes the project with open arms, touting that the deal will prove advantageous to the nation. CBC News quotes Dexter in his St. John’s teleconference on Thursday.

"In my view, this is our CPR. We are building the Atlantic region. We are building the nation. This strengthens us as a region, but ultimately, in so many categories, it builds the country."

While the Labrador Innu will be given priority, the project proposes to offer a total of 2,700 jobs with 120 permanent positions.

To read more on the current issue, visit http://www.cbc.ca/canada/newfoundland-labrador/story/2010/11/19/lower-churchill-political-reaction-120.html or http://thechronicleherald.ca/Front/1212847.html