Nalcor Energy is developing the projects, while the federal government of Canada has provided a loan guarantee for the financing of the projects.

The Muskrat Falls project, which is the phase one of the broader two-phase Lower Churchill project, includes the 824MW hydroelectric plant, the Labrador-Island Link and the Maritime Link.

The Labrador-Island Link will transmit power from Muskrat Falls to Soldiers Pond on the Avalon Peninsula, while the Maritime Link will connect Newfoundland and Nova Scotia that is being built by Emera.

Fasken Martineau lead lawyer Xeno Martis said the key aspect of the project financing was to structure it in a manner that the sovereign guarantor’s AAA credit rating would be transferred to the project special purpose vehicles such that the pricing for the debt would resemble as much as possible that of the AAA Sovereign.

"Fasken Martineau conceived and proposed a modified ‘wrap structure’ which sheltered the lenders from any project risk and provided them with direct recourse to the Sovereign," added Martis.