New Churchill Falls Agreement Promises Major Economic and Energy Shifts for Newfoundland and Labrador
The historic deal with Quebec could generate billions in revenue, expand energy capacity, and address local power needs while raising environmental and equity concerns.
- The new Churchill Falls memorandum of understanding (MOU) between Newfoundland and Labrador and Quebec outlines plans to quadruple Newfoundland's access to hydroelectric power and develop the Gull Island project.
- Projected revenues from the deal could bring Newfoundland and Labrador $1 billion annually for the first 17 years, with payments increasing over time, potentially addressing the province's $17.7 billion net debt.
- Local leaders and Indigenous groups in Labrador emphasize the need for equitable benefits, cleaner energy for underserved communities, and meaningful consultation to mitigate environmental risks like methylmercury contamination.
- The agreement is expected to provide significant energy capacity for industrial projects in Labrador, including mining operations, while also positioning Hydro-Québec as a leader in renewable energy partnerships.
- Experts highlight the transformative potential of the deal for Newfoundland’s economy, cautioning that prudent financial management is crucial to maximize long-term benefits.
CBC 
The Globe and Mail 