BACKGROUNDER
Request
for Expressions of Interest and Proposals for the
development of Lower Churchill Hydro Resource
The Government of Newfoundland
and Labrador and Newfoundland and Labrador Hydro (NLH) are jointly inviting
written expressions of interest and proposals for participation in the
development and operation of the Lower Churchill hydroelectric resource.
The objective of this public
invitation is to provide all potential interested parties with the
opportunity to present their development concepts and qualifications to
Government and NLH for consideration. Proposals that best meet Government�s
objectives for development of the resource will be considered for
feasibility assessment.The Government of Newfoundland and Labrador is
committed to developing the Lower Churchill resource under the best possible
arrangement for the people of the Province.
Overview of Process
- This formal process will be the starting
point for all potential proponents interested in participating in
development of the Lower Churchill resource, regardless of any previous
exploratory discussions to date.
- An information package has been prepared
for use by prospective proponents and is available at the following
website: www.gov.nl.ca/lowerchurchill/.
This package provides interested parties with:
- Background information on the Lower
Churchill hydro resource
- Government�s objectives for
development of the resource
- A technical description of the Gull
Island and Muskrat Falls projects
- Background information on the
aboriginal land claim to the development area
- Proposal requirements
- Terms and conditions� such as
confidentiality terms, government obligations, proponent
obligations, deadlines, etc.
- Proposal requirements will include, but
are not limited to :
- Summary of project development concept
- Statement of proponent�s objectives
for investment
- Summary of provincial benefits
- Technical description of the project
configuration
- Description of the proposed
development concept, including but not limited to: type of
commercial arrangements with the Government and other parties;
market strategy; financing plan and principles; and any government
assistance required.
- Statement of proponents� business
operations, relevant experience and financial capacity
- Plan for a feasibility assessment
(stage 2)
- Identification of plan to address
aboriginal interests
- Identification of plan to address
environmental issues
- The deadline for submission of proposals
is March 31, 2005.
- Completion of the proposal evaluation
process will be determined by the number of proposals received.
- Proposals will be evaluated by an
assessment committee comprised of representatives from Government and
NLH. Successful proponents will be invited to enter into an agreement
with the Government of Newfoundland and Labrador and NLH outlining the
terms for a feasibility assessment to be undertaken for the selected
development proposal(s).
- Proposals will be evaluated on the basis
of:
- The proponent�s financial and
technical qualifications;
- An assessment of the proposal concept
and its compatibility with government�s objectives for development
of the resource, particularly in terms of: maximizing benefits for
the province, project financing and risk management;
- Support for the feasibility of the
development concept;
- Demonstrated awareness of aboriginal
issues and willingness to plan to address these issues;
- Demonstrated sensitivity to provincial
issues;
- Demonstrated awareness of
environmental issues and commitment to management of environmental
aspects of the development
- The multi-phase process is outlined as
follows:
- Phase 1 � Invitation for Expressions
of Interest and Proposals
- Phase 2 � Feasibility assessment of
selected project concepts
- Phase 3 � Negotiation of commercial
principles and ongoing technical study
- Phase 4 - Detailed commercial
negotiations and final technical studies.
The entire process is anticipated to take
in the range of 18 to 24 months; however, the precise schedule will depend
on the number and nature of the responses to the invitation.
Background on the Lower Churchill Hydro
Resource
The Churchill River located in Labrador, in
the Northeast region of Canada, has long been recognized as a significant,
low cost supply of clean, renewable energy that has yet to be fully
developed. The Lower Churchill hydro resource includes two potential sites.
Gull Island ( 2000 MW) is located 225 km downstream from an existing 5428 MW
generating facility at Churchill Falls. A second smaller potential site is
located at Muskrat Falls ( 824 MW), 60 km further downstream.
January 10, 2005
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