Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, as confirmed by sources familiar with the situation to CBC News. The sources, who preferred to remain anonymous, indicated that while two or three issues are still pending, they are nearing resolution, with both governments aiming to make an official announcement early next week. La Presse, a Montreal-based newspaper, has already reported that a deal has been struck. However, a spokesperson from the office of the N.L. premier clarified that no final agreement has been signed yet.
Ashley Politi, speaking on behalf of Tony Wakeham, stated, “We have made significant progress recently in our discussions with Quebec and the Government of Canada regarding the replacement of the 2024 MOU with a new arrangement for Churchill Falls and Gull Island.” In response, a spokesperson for Quebec Premier Christine Fréchette expressed in French that they cannot confirm or deny the information presently.
This development follows the meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of Churchill Falls power. In December 2024, former Liberal premier Andrew Furey had initially signed a Memorandum of Understanding with Quebec, targeting the termination and replacement of the contentious 1969 Churchill Falls contract. The agreement also included plans for the development of Gull Island, an ongoing hydroelectric project on the Churchill River.
Although the MOU was set to be formalized by April 2026, this milestone was never achieved. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee. The committee’s findings in the spring concluded that the MOU was not in the public’s best interest.
During the election campaign, Wakeham had pledged to subject the Churchill Falls MOU to a referendum. However, since then, he has remained tight-lipped, emphasizing the need to finalize a deal first. Negotiations between N.L. and Quebec resumed in June.
Meanwhile, the opposition Liberals have voiced frustration over the lack of transparency in releasing information about the latest MOU developments to the public. In an emailed statement, the opposition highlighted the need for Premier Wakeham to be open and forthcoming with the people of Newfoundland and Labrador.