The P.E.I. government is getting the financing in place for new transmission cables to New Brunswick. Cabinet has approved a loan from the Toronto-Dominion Bank of up to $80-million to the PEI Energy Corporation for the PEI-NB Cable Interconnection Upgrade Project.
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The current cables, buried beneath the waters of the Northumberland Strait between New Brunswick and P.E.I., are nearly four decades old and have a life expectancy of about 50 years. Maritime Electric has said every year past 40 poses a greater risk of leaking insulation oil, which has happened in the past.
The province and the utility have also said the cables are needed to meet the growing demand for electricity on P.E.I.
The loan from TD is amortized over 30 years at an interest rate of 2.512 per cent.
Total cost of project estimated at $120M to $140M
The total cost of the project has been estimated at between $120 million and $140 million.
The province has an agreement-in-principle for $50-million of that from Ottawa through the Green Infrastructure Fund
A provincial official said Friday they're hopeful further financing will be put in place.
Discussions about installation of new cables began as far back as 2005.
On the province's website, the project is listed as "pending."