Big questions loom now that Nalcor Energy has named Astaldi Canada, a subsidiary of one of Italy's largest construction firms, as contractor for the $1-billion civil-works construction at the Muskrat Falls hydropower development on Canada's Lower Churchill River in Newfoundland and Labrador. The owner already has spent nearly $2 billion on site preparation work, with more than 900 workers now at the jobsite. However, the project lacks a major power-transmission deal or federal loan guarantee, and a court challenge is pending over water rights.
The civil-works award is the largest single contract associated with the development, including construction of the powerhouse, intake and gated spillway. But new contracts could be at risk, says Paul Antle, a chemical engineer and venture capitalist campaigning for the leadership of the province's Liberal Party (if nominated, he hopes to run for premier in 2015). "It boggles my mind that the province moved forward with construction on this project without having the financing in place," he says.