the hydroelectric potential of this area was known by the early 1920s but its development was not seriously considered until 1954 when british newfoundland development corporation (brinco) became interested in the site. in 1957 a shawinigan engineering survey confirmed the feasibility of building a hydroelectric plant. by 1959 brinco had set up a subsidiary, southern newfoundland power and development corporation, to carry out the project. however, the subsidiary was unable to attract industrial customers to the area; this, it felt, was necessary before undertaking the project, so in 1964 it sold all its rights and assets to the newfoundland government.