Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement regarding Churchill Falls, according to sources familiar with the situation as reported by CBC News. The sources, who requested anonymity, mentioned that while there are a couple of unresolved issues, significant progress has been made, and both governments are looking to make an official announcement early next week.
A report by Montreal-based newspaper, La Presse, indicated that a deal has been struck, but a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed at this time. Ashley Politi, speaking for Tony Wakeham, noted that recent negotiations with Quebec and the Canadian government have advanced significantly towards replacing the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette stated in French that they cannot confirm or deny the information presently. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island, where they discussed a potential new agreement for the sale and development of Churchill Falls power.
Previously, former Liberal Premier Andrew Furey had signed an MOU with Quebec in December 2024, aiming to replace the controversial 1969 Churchill Falls contract and move forward with the development of Gull Island hydroelectric project on the Churchill River. The MOU was supposed to be formalized by April 2026, but that did not materialize.
Following the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU. The review committee eventually concluded that the MOU was not in the public interest. During his election campaign, Wakeham had pledged to subject the Churchill Falls MOU to a referendum, but he has since emphasized the necessity of reaching a deal first.
Negotiations between Newfoundland and Labrador and Quebec recommenced in June. Meanwhile, the opposition Liberals have expressed dismay over the lack of transparency in releasing information to the public, urging Premier Wakeham to provide more openness in communicating developments regarding the MOU.