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  • Work continues towards achieving the optimum project configuration to ensure maximum value for the owners.
  • Up to $30 - $40 million in contracts will be awarded.
  • Memorandum of Understanding expected in the Spring.
  • Formal agreements expected by year end.

Harnessing the Potential

Churchill River Power

Since 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:

  • Construction of a 2,264 mega watt (MW) generating station at Gull Island at a cost of $3.2 billion;
  • Churchill Falls expansion, including the partial diversion of two Quebec rivers into the Smallwood reservoir and the construction of a new powerhouse next to the existing underground powerhouse, at a cost of $1.3 billion;
  • transmission infrastructure, including two 735 kV transmission lines from Gull Island: one to Churchill Falls and another to Montganais, Quebec, at a cost of $3 billion;
  • feasibility studies for the potential development at Muskrat Falls;
  • and, an infeed to Newfoundland, comprised of an 800 MW HVDC transmission line from Gull Island to Soldiers Pond near Holyrood, at a cost of $2.2 billion.

Gull Island development - Artist's rendition

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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