Natural Resources Minister Derrick Dalley says committee members will be drawn from the departments of finance, natural resources and justice.
Dalley says the committee will review information provided by external auditors, an independent engineer and Nalcor Energy, the province's Crown-owned energy company.
He says the committee will report to cabinet and provide quarterly, public updates starting in July.
Nalcor has also committed to preparing an annual report on the project, prepared by the corporation's external auditors, and issue quarterly consolidated financial statements starting later this year.
Nalcor already produces monthly benefit reports that include details on employment, construction costs, procurement, safety and environmental activities.