Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement concerning Churchill Falls, according to sources familiar with the situation. The sources, who requested anonymity, revealed that there are a few remaining issues to be resolved, but significant progress has been made, and both governments are aiming to announce the formal agreement early next week. While a report from Montreal-based newspaper La Presse indicated that a deal has been reached, a spokesperson from the N.L. premier’s office clarified that no finalized agreement has been signed yet.
Ashley Politi, a spokesperson for Tony Wakeham, confirmed that substantial headway has been made in negotiations with Quebec and the Government of Canada regarding the replacement of 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 this time.
The recent progress 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. The initial MOU, signed by former Liberal premier Andrew Furey, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island hydroelectric project on the Churchill River.
Despite the initial expectation to formalize the MOU by April 2026, the process was delayed, leading to a call for an independent review by a committee appointed by the new Progressive Conservative government after the October 2025 provincial election. The committee later concluded that the MOU was not in the public interest. Wakeham had previously pledged to subject the Churchill Falls MOU to a referendum but has since emphasized the need to first reach a deal.
Negotiations between Newfoundland and Labrador and Quebec recommenced in June. Meanwhile, the opposition Liberals have voiced dissatisfaction with the lack of transparency in communicating the latest developments to the public. They stressed the importance of Premier Wakeham being forthcoming with the residents of Newfoundland and Labrador regarding the details of the agreement.