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Harnessing the PotentialChurchill River PowerSince March 1998, Newfoundland and Labrador Hydro and Hydro Quebec have been negotiating detailed agreements to further develop the Churchill River system. Once underway the Churchill River Power Development will be the largest construction project in Canada, and one of the largest in the world. In the construction phase, the development is expected to give rise to an estimated 13,200 person years of direct employment on infrastructure for Newfoundland and Labrador Hydro. The Projects The development consists of the following:
When completed, the capacity of the Churchill River System will increase to about 9,000 MW from the existing 5,400 MW. In operation, it will have the full benefit of higher market prices, with the additional protection of a floor price guarantee from Hydro Quebec in the event of lower market prices. Ownership will be 65.8% Newfoundland and Labrador, 34.2% Quebec. The development will account for up to 15% of Canada's Kyoto commitment to reduce greenhouse gas emissions. Progress in 1998 Negotiations continued last year. Detailed engineering and environmental work was also conducted last summer and fall. Over 30 contracts worth about $10 million were awarded. As part of the March 9, 1998 announcement regarding the further development of the Churchill River system, Hydro Quebec waived its three-year recall notice, allowing Newfoundland and Labrador Hydro to recall the power and sell it to Hydro Quebec at current market prices. In December 1998, Newfoundland and Labrador received its first instalment of $27 million for the resale of 130 MW of Upper Churchill power to Hydro Quebec.
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