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Contracts awarded before Muskrat Falls hydro project formally approved

ST. JOHN’S, N.L. – Road work for the proposed Muskrat Falls megaproject in Labrador is going ahead even though the development hasn’t been approved by the provincial government.

Newfoundland and Labrador’s Crown corporation Nalcor Energy says it has awarded two contracts to clear snow and trees for an access road.

It says a third contract for road construction will be announced soon so contract amounts aren’t being revealed during that competitive process, but Nalcor CEO Ed Martin says they are worth millions of dollars.

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The two contracts have been awarded to Innu companies in accordance with a benefits agreement tied to the proposed $6.2-billion project.

The plan to bring hydro power from the lower Churchill River to Newfoundland and then mainland markets is to be voted on in the legislature later this year.

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Opposition critics and other skeptics have accused the government and Nalcor of rushing Muskrat Falls without fully exploring other options.

But Martin says it makes sense to start preliminary road work to be ready if the project is approved.

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