Ottawa pledges $71 million for Yukon power dam

Prime Minister Stephen Harper, wrapping up a week-long tour of CanadaÂ’s North, visited a hydroelectric dam near here where federal funding will boost the damÂ’s ability to produce clean hydroelectricity, displacing diesel-fueled power sources in the Yukon.

Mr. Harper and Yukon Premier Dennis Fentie signed a contribution agreement for the Mayo B hydro power plant, a $160-million project that is expected to be complete by 2013. The federal government will contribute $71-million to the project.

The federal government says the addition of the new power plant at the Mayo dam will help the Yukon reduce its dependency on diesel fuel for electricity and cut greenhouse has emissions by 50% from current levels.