Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, as per sources familiar with the situation. The sources, who requested anonymity, indicated that while a few issues remain unresolved, both governments are nearing a resolution and are expected to make an official announcement early next week.
A report from Montreal-based newspaper La Presse suggested that a deal has been reached, but a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, mentioned that significant progress has been made recently in negotiations with Quebec and the Government of Canada regarding replacing the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at present. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of Churchill Falls power.
Former Liberal Premier Andrew Furey initially signed an MOU with Quebec in December 2024, aiming to replace the contentious 1969 Churchill Falls contract and advance the Gull Island hydroelectric project on the Churchill River. The formalization of the MOU was expected by April 2026 but did not materialize. Following the 2025 provincial election, the new Progressive Conservative government called for an independent review of the MOU, which concluded that it was not in the public interest.
Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum but has since emphasized the need to secure a deal first. Negotiations between Newfoundland and Labrador and Quebec resumed in June.
The opposition Liberals have voiced frustration over the handling of information dissemination to the public, stating that the latest MOU developments are being reported by Quebec media rather than by the local government. They are urging Premier Wakeham to be more transparent with the people of Newfoundland and Labrador.