'Really good news': Dwight Ball pleased with $2.9B Muskrat Falls loan guarantee

Newfoundland and Labrador Premier Dwight Ball says he's pleased with the federal government's decision to increase its loan guarantee for Muskrat Falls

• Ottawa approves additional $2.9B loan guarantee for Muskrat Falls
• N.L. finance minister 'disappointed' by Quebec's opposition to extended Muskrat Falls loan guarantee

Ball said Ottawa's approval of an additional $2.9 billion for Muskrat Falls is a positive thing.

"This is really good news and will have a positive income indeed on the borrowing requirements for the province," he told CBC News Thursday night.

'Certainly helps'

Ball's government had asked Ottawa earlier this year to extend the 2013 loan guarantee capped at $5 billion that had been negotiated by the previousConservative government.

"Essentially it means we can borrow at better rates, and we will use that money to offset electricity rates for ratepayers within our province."

The new guarantee will ensure that borrowing costs remain lower than what the province could qualify for on its own.

"This certainly helps because as a province Newfoundland and Labrador would not be able to get rates at the 2.4 per cent," said Ball.

"Our rates would be much higher and any time you pay higher rates of course that would mean higher electricity rates."

He said the deal was part of series of discussions the provincehad with Prime Minister Justin Trudeau's government over the past month.

"It was really a reflection that the federal government realizes the situation our province is into," he said.

'Responsible thing'

In announcing the deal, federal National Resources Minister Jim Carr cited several reasons for the agreement.

He said it will help the government achieve climate change goals and help secure Atlantic Canada's future energy needs.

But most importantly, Carr said it would help out a struggling province.

"The project is late, seriously over budget. That is impacting the financial capability of the province of Newfoundland and Labrador and we think that it's a responsible thing for the government of Canada to extend the loan guarantee ... as a way for Canada to help Newfoundland and Labrador during this tough time."