A couple of weeks ago the Montreal Economic Institute (MEI), regarded by some as Quebec’s right-wing think thank, opened a can of worms when it published a 4-pager brief on bulk-water exports.

Essentially the idea has its roots in Robert Bourassa’s 1995 book Power from the North. Bourassa, the architect of the James Bay hydroelectric complex, had proposed at the time the sealing off of the James Bay and its subsequent transformation into the ‘largest man-made’ fresh water lake whose water would have been transferred to the Great Lakes through a series of canals, pumping stations, and hydroelectric stations. To give him credit, in the same book, Bourassa envisioned Quebec as the world’s leader in hydrogen industry that would have changed forever the course of the energy history.

Although costly and technically unfeasible, the Grand Canal project has recently inspired the MEI position paper on bulk-water exports titled Northern Waters: a realistic, sustainable and profitable plan to exploit Quebec’s blue gold. The scheme involves ‘capturing’ the flood waters of three northern Quebec rivers: the Broadback, Waswanipi and Nottaway (or Bell). The water will then be transferred towards the Ottawa River valley though a network of pumping stations and will eventually find its way into the St. Laurence. One of the most enticing aspects of the project is the 14 terawatt-hours (TWh) of electricity produced by the pumping stations and already exiting hydroelectric installations in the Ottawa River valley. This energy corresponds to almost double of the Romaine dam complex (8TWh) currently under construction in the North Shore. The second financial benefit is the possibility of selling bulk-water to Ontario and the US. As stated in the brief the excess water can be used either to regulate the levels of the St. Laurence and increase the volume in the Great Lakes, or to sell it to the US by diverting it into the Chicago Canal and the Mississippi River.

Proposed project

If competed by 2022 the project would cost close to $15 billion. The revenues from the electricity produced would amount to about $2 billion annually and the bulk-water annual revenues could reach about $20 billion (calculated at $0.85/cubic meter). Holding 3% of the world’s fresh water resources, Quebec has the most valuable resource at its fingertips and is no surprise that in times of economic instability projects such as this resurface.

The MEI contends that the project will have minimal environmental impact as it would use the ‘natural flood waters’ and would create a reservoir area of ‘only’ 1100 km square, or the total area of the Hong Kong island. Comparatively the Romaine hydroelectric project will flood about 280 km square and the Rupert project close to 350 km square. But apart from the probable environmental impacts, the MEI proposition has most importantly touched one of the most contentious issues of the 21st century: bulk-water exports and the commodification of a valuable non-renewable resource essential to life.

According to current Canadian legislation bulk-water exports are banned. Although the legislation cannot force a province to adhere strictly to this stance, the 1999 strategy prohibits bulk water removals from major drainage basins in Canada, whether for domestic or export purposes. In 2001, the federal government introduced amendments to the International Boundary Waters Treaty Act (IBWTA) that prohibit the removal of large quantities of water from Canadian boundary waters, principally the Great Lakes, and is presently working with the northern territories to develop a similar strategy for the northern water resources.

Nevertheless Canada’s stance on bulk-water exports and its water conservation legislation are still threatened by NAFTA. According to the Council of Canadians because NAFTA defines water as a “service” and an “investment” it leaves us vulnerable to thirsty foreign investors, increases water insecurity and desertification, and possibly our environmental sovereignty. Since NAFTA prohibits the restriction on trade, it invalidates any federal or provincial legislation that bans bulk-water exports. Chapter 11 can limit the implementation of the provincial legislative regime regarding foreign investors that already have water exploitation rights. This means that even if the provincial government has passed Bill 27 – An Act to affirm the collective nature of water resources and provide for increased water resource protection, legally recognizing water as a common resource vital for life, a foreign company can bypass it and further possibly bring legal action against the province if trade restrictions are imposed.

Although no provinces have yet actualized any bulk-water projects and their economic feasibility is still questionable, by setting such precedent, Quebec runs the risk of causing significant water scarcity in the province and endangering our water security in the long-term.

Interesting sources:
Latest documentary of privatisation of water – Blue Gold: World Water Wars (2009)
Another documentary available free on googlevideos – A World Without Water (2006)