
Audit finds boosters of Muskrat Falls megaproject ‘understated’ its costs
HAPPY VALLEY-GOOSE BAY, N.L. — An audit has found Newfoundland’s Nalcor Energy may have overstated the potential value of its Muskrat Falls hydro megaproject — and prematurely dismissed alternative electricity options for the province.
Accountants from Grant Thornton testified Friday at the inquiry into cost overruns of the $12.7-billion Labrador dam, presenting a report on the provincial Crown corporation’s early financial analysis and consideration of other options.
Their findings suggest Muskrat Falls was not necessarily the province’s most cost-effective energy option, contrary to what Nalcor and government officials said when the project was sanctioned.
“It is now abundantly clear that Nalcor understated the costs of the Muskrat Falls project so as to get the project sanctioned,” the Muskrat Falls Concerned Citizens’ Coalition, a citizens’ group with standing at the inquiry, said in a statement after the Grant Thornton report was released.