Nova Star spending $21M subsidy faster than planned
Nova Star Cruises has now received $21 million total in government subsidies from Canada, far sooner than what a seven-year payment schedule originally called for.
The Portland Press Herald reported that Nova Star, which provides ferry service between Portland and Yarmouth, Nova Scotia, received a total of $21 million from the Canadian province of Nova Scotia in just a few months after a final payment for $2.1 million was recently issued. More funds could be issued in the future.
Toby Koffman, a spokesman for Nova Scotia's Department of Economic and Rural Development Tourism, said the ferry service has been spending its government subsidy faster than planned because of lower-than-expected passenger revenues.
Mark Amundsen, Nova Star's president and CEO, said in a statement to the Press Herald that there have been “significant” startup costs as the company continues to attract passengers.
Nova Star has yet to receive any financing from the state of Maine. State officials have been working with the company to help it obtain a $5 million line of credit from a local bank.
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