The federal government is starting work on the financial restructuring of the Muskrat Falls project.

The $13-billion project is an economic millstone around the necks of all Newfoundlanders and Labradorians, who will have to start paying down the project by the end of 2021.

Today Prime Minister Justin Trudeau announced the appointment of Serge Dupont who will lead the charge on financial restructuring of Muskrat Falls – a project that meets the federal government’s goals for green energy.

Premier Andrew Furey says the immediate fiscal pressures facing the province will be eased by no longer having to borrow $844-million, most of which would have had to be paid this month – adding to the province’s debt load.

That will allow the financial flexibility needed to complete the project says Furey, and reduces the immediate requirement for immediate funds and significant borrowing costs.

Furey hinted that more federal involvement is likely. One possibility is a federal equity stake.

A restructuring agreement is expected by the time the project is commissioned sometime in late 2021.

Intergovernmental Affairs Minister Dominic LeBlanc calls Muskrat Falls the “green battery that powers Atlantic Canada.”

The federal government earlier this year announced the so-called Atlantic Loop, but few details were available at the time. He sees that concept as one which would be good for the entire country if done right.

They hope to have a term sheet out sometime in the spring.

Watch live: PM Justin Trudeau makes an announcement with the Premier of Newfoundland and Labrador, Andrew Furey. https://t.co/INQZUIU3lj

— CanadianPM (@CanadianPM) December 17, 2020