Danny Williams, the Premier of Newfoundland and Labrador, announced today that a short list of four development options for the Lower Churchill River hydro-electric mega project has been determined.
Earlier this year the province publicly requested proposals for this development and 25 options were received. Now, after months of independent review by both government and Newfoundland and Labrador hydro, the names of the final four have been released.
The four options still in the running include one by the province itself, in conjunction with Newfoundland and Labrador Hydro. According to Premier Williams, this option will be given priority.
Development of the project by the province and NL Hydro would be the preferred choice of many in the province as it would ensure a low cost source of energy while allowing the province to retain complete control of the resource and resulting revenues.
Although it would be the choice favored by Newfoundlanders and Labradoreans, the estimated development costs of between $5 and $9 billion may be more than the province would be willing to take on.
Other options include one from TransCanada Corp. and another from a consortium comprised of several parties including Macquarie North America Ltd. and Peter Kiewit & Sons however very little is publicly known about either of these proposals.
Perhaps the most well known and highly debated bid still in contention is one from Hydro Quebec in partnership with Ontario Energy Financing and SNC Lavalin. This proposal made headlines in the province and around the country a few months back and sparked much heated debate.
This option would see Hydro Quebec take control of the resource and sell power into Ontario and other markets. It is an option that is viewed by many in the province with suspicion and trepidation. This is due largely to the fact that an existing deal with Hydro Quebec for Upper Churchill power, which was signed decades ago, continues to see the company reap billions in revenues while the province of Newfoundland and Labrador is barely breaking even on production costs.
The previous Upper Churchill deal has haunted the province and its leaders since its signing and it is widely believed that any new deals brokered with Hydro Quebec must be seen to be slanted in the provinces favour if the provincial government is to survive.
During his announcement today Premier Williams stated that proponents shortlisted would now be invited to enter into feasibility agreements as the next step in the process.