On February 14, 2005, the former Premier Danny Williams and the
former Prime Minister Paul Martin announced the execution of a new
revenue-sharing agreement between the Province of Newfoundland and
Labrador and the Government of Canada.1 Pursuant to the
2005 agreement, the Government of Canada and the Province agreed to
review the arrangement no later than March 31, 2019.2
On April 1, 2019, the Province executed a new agreement with the
Government of Canada, with revenue and collaboration as the major
themes of the announced agreement.
Revenue
Pursuant to the Hibernia Dividend Backed Annuity
Agreement,3 the Province will receive a revenue stream of
approximately $3.3 billion over the next 38 years, commencing this
year. In consideration for receiving these payments from Canada,
the Province shall pay Canada eight annual payments of $100
million, beginning in 2045. As the payments to the Province are
frontloaded, the Province will receive approximately $1.9
