The Churchill River was recognized as a potential source of hydroelectric power in 1894. However, there were obstacles to overcome before development could occur - harsh terrain, severe climatic conditions, geographic remoteness, long distance transmission requirements, and lack of markets.
In the 1950s, the province of Newfoundland and Labrador was eager to see its largely untapped water and mineral resources developed. A group of banking and industrial firms established the British Newfoundland Corporation Limited (Brinco) in 1953. Brinco was granted exclusive mineral and water rights over more than 129,450 square kilometres in both Newfoundland and Labrador for a 20-year period.
The Churchill Falls (Labrador) Corporation Limited was established by Brinco in 1961 and was granted a 99-year lease authorizing development of the Upper Churchill River watershed. The river had a natural drop of over 300 meters in less than 32 kilometres. Precipitation and run-off patterns were forecast to be dependable. Extensive storage of water on the elevated plateau was readily achievable.
Development of the Churchill Falls hydro plant began in 1963. A letter of intent with Hydro-Québec was signed in 1966. A further three years of negotiations were required to finalize the power contract. Financial agreements concluded in 1969.
The first two generating units began delivering power to Hydro-Québec at 5:17 p.m., December 6, 1971. The project was five months and three weeks ahead of schedule. Construction of Churchill Falls involved approximately 6300 workers and cost 946 million dollars.
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