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: 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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