SHAWN MCCARTHYGLOBAL ENERGY REPORTER
OTTAWA
PUBLISHED JULY 23, 2018UPDATED JULY 24, 2018
72 COMMENTS
Ontario’s move to cancel the contract of a German-owned wind energy project represents a black mark for the province in the eyes of foreign investors, Berlin’s ambassador to Canada, Sabine Sparwasser, warned Monday.
The German government and multinational companies have taken note of Premier Doug Ford’s decision to pull the plug on wpd AG’s White Pines wind project in Prince Edward County, as well as the bill now before the legislature that will allow the province to set limits on what compensation is provided, Ms. Sparwasser said in a telephone interview.
“Obviously, every incoming government has the right to change policy direction,” she said. “But to have a unilateral cancellation pushed through by law that way is unsettling for the company, but is also something that will unsettle other potential investors."
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The ambassador’s warning was echoed by John Manley, president of the Business Council of Canada, which represents chief executive officers of the country’s largest firms.
In a letter to Premier Ford dated Monday, Mr. Manley urged the provincial government to reconsider the cancellation, saying it is sending the wrong signal as the premier declares the province “open for business.” He compared the decision to the move by the New Democratic Party government in British Columbia to throw up barriers to the federally-approved Trans Mountain pipeline expansion project, which would increase oil exports from the West Coast.
“In your dealings with renewable power developers, we urge you to consider carefully the potential lasting negative effects that arbitrary actions can have on investor confidence,” Mr. Manley wrote. “Among Ontario’s strengths are its reputation for fair dealing and respect for the rule of law. Many of the business leaders I represent are concerned that this hard-earned reputation is at risk.”
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