LE DEVOIR (translation)
May 29, 2001
Page 1

It Will Rain Hydro Projects
(interview with Bernard Landry, Premier of Québec)

by Robert Dutrisac

Bernard Landy has given Hydro-Québec a green light to develop any
hydro projects it finds interesting to quench the Americans'
insatiable thirst for energy.  Although it abandoned the Churchill
Falls project last November, the Québec government is even ready to
return to negotiations with Newfoundland.

"I told Hydro-Québec clearly that it has its shareholder supports in
its efforts to expand its capacity to produce greenhouse-gas-free
power.  That is, build hydropower, as much as you can," the Québec
Premier told the Devoir.

Newfoundland has indicated to the Québec government its intention to
reopen "a dialogue" concerning the Churchill Falls hydro megaproject.
"We are ready any time," said Mr. Landry.  The original project would
have involved the construction of a 3,000 MW dam at Gull Island, at a
cost of $12 billion [CDN]. In comparison, the development of 36
rivers by the private sector, authorized by Natural Resources
Minister Jacques Brassard last Thursday, will provide Hydro-Québec
with 425 MW.

Hydro-Québec obtained this green light in a context where the Bush
administration has adopted an energy policy based on increasing
supplies across the continent to satisfy Americans' growing energy
needs, without stimulating conservation.  "We are the best placed in
[North] America," Mr. Landry emphasized.  Thanks to its reservoirs,
Hydro-Québec can store electricity in times of weak demand and resell
it later at high prices across the border.  As 75% of Québec's energy
production produces no greenhouse gases, he said, "those who want
greenhouse-gas free energy should be interested in what is going on
in Québec."

Mr. Landry recognized that the construction of new hydro projects is
now subject to constraints that did not exist when Québec's big
plants were built in the 1970s.  But the Premier nevertheless takes
inspiration in this regard from [the late former Premier] Robert
Bourassa.  "As much as we can," he said.  "But in those sites where
these constraints can be overcome or exceeded or negotiated, it's
certain that we want to build," said Bernard Landry.

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