James Bay Project

James Bay Project, massive hydroelectric-power development under construction in northern Québec, Canada. Administered by Hydro-Québec, a Canadian utility, the project, if completed, will consist of a series of extensive hydroelectric dams on the rivers that flow from the interior of northern Québec west into James Bay. The project is divided into three phases: the La Grande Rivière project, the Great Whale River project, and the Nottaway-Broadback-Rupert rivers project. The first phase of the project has been completed; if all three phases are concluded, the development could produce 28 million kilowatts of energy, an amount equivalent to about one-quarter of Canada's present electricity consumption. However, much of this quantity is intended to be sold to utilities in New England. The James Bay Project is highly controversial because of its environmental and social impacts, and construction of the final two phases has been suspended.

Québec turned to hydroelectric power in the 1960s to reduce its dependency on foreign petroleum. With the rise of oil prices in the 1970s, the policy gained increased importance. The James Bay Project was announced in 1971 by Québec premier Robert Bourassa. The first phase involved the construction of dams on La Grande Rivière in northern Québec and the diversion of waters from three other rivers—the Eastmain, Opinaci and Caniapiscau—to La Grande. Completed in 1985, this development generates more than 10 million kilowatts of electric power.

Planning for the second phase, the Great Whale River project, began in 1989. It has been halted, however, because of low prices for electrical energy and opposition from indigenous peoples and environmentalists. The protest groups argue that large natural areas would be destroyed by the damming and diversion of rivers and the creation of vast reservoirs.

The Cree and Inuit of northern Québec opposed the James Bay Project when construction began in the early 1970s. They maintained that the project would flood their traditional hunting and fishing grounds. Claiming aboriginal title to the land, the indigenous peoples took the Québec government to court. In 1975 the parties signed the James Bay and Northern Québec Agreement. In essence, this agreement allowed the Québec government to proceed with its hydroelectric scheme and provided compensation to the Cree and Inuit for surrendering their aboriginal claims. Their compensation included a cash settlement of $225 million, the right to hunt on other land, and the power to govern themselves. Although the agreement facilitated the completion of the first phase of the James Bay Project, the lack of consensus about the settlement has become an obstacle to the final two phases.