EY’s Interim Report on Muskrat Falls Released
April 12, 2016
I rise in this Honourable House today to speak on the interim report by EY, received April 8 and released online today with the Muskrat Falls Oversight Committee’s report to the end of December 2015, received April 11.
We said in December we would open the books on the Muskrat Falls Project and we are fulfilling that commitment. As shareholders and as taxpayers, we are entitled to up-to-date and accurate information. The interim report is being made available to ensure transparency on the project.
The interim report informs government about the current material risks and issues that are not reflected in the September 2015 forecast, and provides recommendations to improve project governance. The overall conclusion of the EY review is that the September 2015 forecast is not reasonable.
We take EY’s recommendations seriously and it is our full intention to action them all including strengthening project governance and expanding oversight which we expect to have completed by the end of May.
Schedule pressures and expected cost increases on the Muskrat Falls Project concern us all. The project is now being reforecast for cost and schedule.
We expect that the schedule and cost reforecast for the Labrador Island Transmission Link and Labrador Transmission Asset will be completed by the end of May.
One component, the powerhouse and intake as part of the Muskrat Falls Generation, is significantly behind schedule. Nalcor is in discussions with Astaldi, the contractor. We will not have the final cost and schedule reforecast until these discussions have concluded.
EY will assess the reasonableness of the revised forecast and will then present us with a final report following their review.
We certainly recognize and appreciate the hard work of the Newfoundland and Labrador residents and companies working on the project. We will be diligent in our actions and we will make the right decisions on behalf of the people of this province. We will ensure the project is managed effectively within budget from here on. Thank you.
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