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Backgrounder - Lower Churchill Project Economic Benefits Development of Muskrat Falls

Infrastructure

• The Muskrat Falls development of the Lower Churchill Project will begin in 2011 and is expected to take approximately six years. The benefits modeling is based on the following components:
  • The Muskrat Falls Generating Facility
  • The Labrador Transmission
  • The Labrador – Island Transmission Link
  • The Maritime Transmission Link

Project Benefits

• Construction of Muskrat Falls will create significant employment, income and taxation benefits for Newfoundland and Labrador, as well as Canada.
• Economic impacts, including employment, income and taxation benefits, are categorized as direct, indirect and induced.
  • Direct impacts are associated directly with the project including engineering and construction activities such as erecting transmission lines or operating heavy equipment on site.
  • Indirect impacts are associated with materials, services and equipment purchased by the project such as workers involved with fabrication of equipment at supplier locations.
  • Induced impacts are those that occur in the services sector throughout the economy as direct and indirect income is spent.
• Direct employment benefits will reach more than 70 occupations.

Newfoundland and Labrador

• The people of Newfoundland and Labrador will be the primary beneficiaries of the Lower Churchill Project as per the Province’s Benefits Strategy for the Lower Churchill Construction Project with Nalcor, which ensures opportunities for the people of the province.
• Total direct, indirect and induced employment in the province is estimated to be 18,400 person years.
• Peak direct employment in Newfoundland and Labrador will be approximately 2,700 people in 2013.
• After construction is complete, Newfoundland and Labrador employment will continue with an estimated 120 direct full-time jobs.

Labrador

• The Provincial Government’s benefits strategy for the project specifically provides first consideration to members of Labrador’s Innu Nation and then qualified residents of Labrador before those from other parts of the province.
• More than 7,500 person-years of direct, indirect and induced employment will take place in Labrador – an average of 1,150 people per year – throughout the development of Muskrat Falls.
• More than 75 per cent of the direct labour for the Muskrat Falls Generation Facility will be undertaken in Labrador.
• Approximately $450 million in income to business and labour will be earned by Labradorians and Labrador-based businesses.

Canada

The development of Muskrat Falls and the transmission link to Nova Scotia is a national project, as reflected by the significant Canada-wide benefits that well be realized during construction and operations