$7-$7.5 billion price tag for Muskrat Falls

CBC News has learned the final price tag for the Muskrat Falls hydroelectric project in Labrador will fall between $7 billion and $7.5 billion.

The provincial government has said it will hold a news conference in St. John's on Tuesday afternoon where the so-called Decision Gate 3 numbers will be made public.

The government has said it will also release Manitoba Hydro International's assessment of those numbers.

MHI has been the company hired to assess Nalcor's projections and offer an expert opinion of their legitimacy.

Government confident in new data

Government sources have said they are confident that the data released tomorrow will provide a solid case for supporting the project despite the higher-than-originally-thought price tag.

When then Newfoundland and Labrador premier Danny Williams announced the Muskrat Falls project on Nov. 18, 2010, its cost was pegged at $6.2 billion.

Sources have said that Tuesday's news conference will be the beginning of what amounts to an information onslaught from the government.

Over the next week or so, the government will release studies on energy sources such as wind power and natural gas, which will explain why those options were not pursued as solutions to the province's energy needs.

The government will also release reports on the mining potential in Labrador and how Muskrat Falls could help kick start billions of dollars in mineral development.