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NLIS 3
November 15, 2000
(Mines and Energy)
 

Minister responds to release of details of Churchill 
agreements by Newfoundland and Labrador Hydro

Mines and Energy Minister Paul Dicks responded today to the release of details of the Guaranteed Winter Availability Contract (GWAC) and the CF(L)Co Shareholders� Agreement by Newfoundland and Labrador Hydro.

"The release of this information by Newfoundland and Labrador Hydro should put to rest, once and for all, the misleading and inaccurate statements made by the Leader of the Opposition," said Minister Dicks. "Mr. Byrne is just plain wrong and his deliberate misrepresentation of the truth is irresponsible and detrimental to the people of Newfoundland and Labrador.

"Newfoundland and Labrador Hydro President Bill Wells confirmed today that the CF(L)Co Board of Directors, which includes Newfoundland and Labrador business leaders, put the GWAC and Shareholders� Agreement in place and stands by them as sound business deals."

The minister noted that without the GWAC and Shareholders� Agreement, both of which arose from the March 9, 1998 Framework Agreement with Hydro Quebec, CF(L)Co would have been in financial jeopardy. Indeed, in the absence of such arrangements, it would have been possible for Hydro Quebec to take greater ownership and control of CF(L)Co. These agreements protect Newfoundland and Labrador�s interests over the long term," said the minister.

"These agreements have been very beneficial to Newfoundland and Labrador Hydro and to the province as a whole. In fact, the GWAC and Shareholders� Agreement, as well as the 130 mw Recall Block arrangement, will result in revenues of $2 billion over the life of the deals. These revenues will be used to develop hydro resources in the province, contributing to our economy, and will also provide substantial revenues to government to support social and economic programs as required."

Minister Dicks noted that discussions with Quebec on purchasing power from the Lower Churchill are continuing and that Newfoundland and Labrador Hydro officials will be holding negotiations with Hydro Quebec on this matter next week. "Government remains committed to a viable project that involves Quebec as a potential power purchaser and which provides significant benefits to the people of Newfoundland and Labrador," he said.


  • Presentation given by Bill Wells, President and Chief Executive Officer of Newfoundland and Labrador Hydro

View Presentation
Diagram #1: Average Net Revenue to NLH from the 130 MW Recall Block
Diagram #2: CF(L) Projected Dividends and Deficiencies
Diagram #3: CF(L) Projected Dividends and Cash/Short-term Deposits


Media contact: Gary Callahan, Director of Communications, (709) 729-4890

2000 11 15 4:00 p.m.


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