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Oversight Committee Releases First Report on the Muskrat Falls Project

Press Release –

Executive Council
Natural Resources
July 31, 2014

Making Responsible Decisions Through Strong Governance

The Honourable Tom Marshall, Premier of Newfoundland and Labrador, today announced the release of the Oversight Committee’s first report on the Muskrat Falls Project.

“The Muskrat Falls Project is owned by the people of the Province and is one of the country’s largest and most important major capital projects. A project of this magnitude and importance requires strong oversight by Nalcor Energy and the Governments of Newfoundland and Labrador and Canada. The release of the Oversight Committee’s first report demonstrates our government’s commitment to ensuring prudent oversight of the project on behalf of the people of the province.”
– The Honourable Tom Marshall, Premier of Newfoundland and Labrador

The Oversight Committee was formed by government to strengthen and formalize existing oversight of the Muskrat Falls Project. The committee has been mandated to provide reliable and transparent oversight so that the public can have confidence in the management of project costs, schedule and risk.

This first report presents the work done by the committee since its appointment and includes information on its governance structure and processes, the existing project oversight measures, the project’s budget and schedule, and next steps. The Oversight Committee engaged Ernst and Young, an independent third party consultant with specialized skills in major capital projects, to conduct an assessment of the Oversight Committee’s terms of reference and to provide advice on what information would be needed to effectively monitor the project’s cost, schedule and risks. The Ernst & Young report is also being released today.

“The Provincial Government has been involved in oversight of the Muskrat Falls Project from initial planning, to early engineering, to our agreements with Emera, and most importantly to sanction and financing. Our government has also ensured that there has been more information made public about this project than any other project in the province’s history, providing the opportunity for review by the public, government, and independent experts.”
– The Honourable Derrick Dalley, Minister of Natural Resources

The committee’s terms of reference and a shareholder’s letter that details the terms of Nalcor’s reporting to the oversight committee are also being released today. The report and all associated documents are available online at www.gov.nl.ca/MFoversight

The next quarterly report will be available in fall 2014 and will provide an assessment of the management of project cost, schedule and risk

QUICK FACTS

  • The Provincial Government today released the oversight committee’s first report on the Muskrat Falls Project and it is available atwww.gov.nl.ca/MFoversight
  • Established in March 2014, the Oversight Committee comprises senior officials from the Departments of Finance, Natural Resources and Justice supported by a working group, and chaired by the Clerk of the Executive Council. With a mandate to provide additional assurance about the project to the people of the province, the committee’s focus is on project costs, scheduling and risk.
  • Prudent oversight is a priority for the Provincial Government and will continue through the construction and operation stages of the Muskrat Falls Project.
  • Extensive oversight continues to be undertaken by the Provincial Government, the Government of Canada, Nalcor Energy, project lenders and independent experts.
  • It is a priority for the Provincial Government to ensure information on the Muskrat Falls Project continues to be made available to the public, while still protecting the commercial interests of the project.

 

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Media contacts:

Milly Brown
Director of Communications
Office of the Premier
709-729-3570
[email protected]

Kevin Guest
Press Secretary
Office of the Premier
709-729-4304, 730-2320
[email protected]

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