Nalcor issues stop-work order to Astaldi; 500 workers being sent home from Muskrat Falls

Nalcor Energy is breaking ties with the financially-troubled main contractor at the Muskrat Falls hydro megaproject, after weeks of fiscal and legal conflict between the two companies.

Nalcor has directed the Canadian subsidiary of Italian construction firm Astaldi to stop working on the site, and is arranging for Astaldi’s 500 workers in Labrador to return home.

The latest dramatic development comes after weeks of legal jousting, with Astaldi seeking more cash for its work on Muskrat Falls, and Nalcor insisting Astaldi is responsible for debts owed to subcontractors and suppliers.

Astaldi has been facing financial woes both in Labrador and Italy, where the parent company has filed for a type of creditor protection.