A well-known economist says there's a megaproject on the horizon for Labrador and he predicts that will help the province get financing for the Lower Churchill hydroelectric megaproject.

Memorial University economist Wade Locke wouldn't provide details about the potential project when he spoke to CBC News Friday at a meeting of the Atlantic Provinces Economic Council in St. John's, where predictions were made about the province's economic future.

The council said oil projects like Hebron, White Rose and soon Hibernia South as well as continued oil exploration will keep the province's economy humming despite financial turmoil across the world. However, the fishery, forestry and tourism sectors are not looking so bright.

It also said projects like the Lower Churchill will be delayed because of the worldwide financial crisis.

Locke disagreed, telling CBC News a new megaproject for Labrador will be announced soon.

"There are significant projects being considered, energy intensive ones for the province that will make the earlier start of the project more viable and it will act more like a loan guarantee for the Lower Churchill that will allow them easier access to capital," he said.

Locke said the new project isn't Vale Inco's expected announcement of a decision whether they'll proceed with a new nickel processing facility in Long Harbour.

Locke wouldn't rule out plans for a possible aluminum smelter. Premier Danny Williams flew to Brazil a year ago this month to press Inco's parent company into considering building an aluminum smelter in Labrador. An aluminum smelter would need huge amounts of cheap power to be competitive.

While Locke wouldn't confirm what is in the works, other sources say talks on the aluminum smelter have been underway for some time.

Spokespeople for the province's natural resources minister didn't return calls from CBC on Friday.