Interviewed by Randy Simms on VOCM Open Line Tuesday, Premier Danny Williams said:
1. The Lower Churchill will be financed by Newfoundland and Labrador alone. Quebec's role will be as the energy transporter, with Ontario as a possible customer for the power.
Don't count on the project proceeding, at least not on terms that are financially favourable to Newfoundland and Labrador. The huge cost of the project, estimated at upwards of $9.0 billion, would effectively double the province's debt. If the province can even arrange financing - and that remains a big if - the terms might render the project financially unpalatable except to a government which has nothing else to offer as an economic development.
2. The energy plan is now delayed until Spring 2007. Originally promised by the end of 2006 and set to include the long-awaited natural gas royalty regime, Williams today said the plan will be out by the end of the year or early in the New Year.
Count on sometime in spring 2007. Williams is notoriously bad at meeting timeliness. He is typically six months or more off original time estimates.
As a result, we can count on even further delays - measured in years - for prospective development of offshore gas.
