Quebec and Newfoundland Labrador are on the verge of finalizing a fresh agreement concerning Churchill Falls, as per sources familiar with the situation. The sources, who were not authorized to speak publicly, revealed that while two or three issues remain unresolved, both governments are close to reaching a resolution and are expected to formally announce the agreement early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been struck, although a spokesperson from the N.L. premier’s office emphasized that no final agreement has been signed yet.
Ashley Politi, speaking for Tony Wakeham, confirmed that significant progress has been made 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 recent 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 in December 2024, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island, another hydroelectric project situated on the Churchill River. The MOU was slated to be formalized by April 2026 but was not executed. Subsequent to the provincial election in October 2025, 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 that the Churchill Falls MOU would be subjected to a referendum, but he has since refrained from further comments, emphasizing the need to first secure a deal. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, the opposition Liberals have voiced discontent over the lack of transparency in disseminating information to the public. They expressed frustration that Newfoundlanders and Labradorians were learning about the latest MOU developments through Quebec media rather than directly from their government. The opposition called for Premier Wakeham to be more forthcoming with the details regarding the agreement.