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 while a few issues remain unresolved, significant progress has been made, and both governments are aiming to make an official announcement early next week.
Reports from a Montreal-based newspaper, La Presse, suggest that a deal has been reached, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet. Ashley Politi, a spokesperson for Tony Wakeham, confirmed the advancement 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 fresh agreement for the sale and development of Churchill Falls power.
Former Liberal premier Andrew Furey initially signed an MOU with Quebec in December 2024, with the aim of replacing the contentious 1969 Churchill Falls contract and developing Gull Island, another hydroelectric project on the Churchill River.
The MOU was slated to be formalized by April 2026, but this did not materialize. After the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee, which later determined that the MOU was not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum. However, he has refrained from elaborating further, stressing the need to reach a deal first. Negotiations between N.L. and Quebec resumed in June.
In the meantime, the opposition Liberals have voiced frustrations over the lack of transparency in releasing information to the public. They emphasized the importance of Premier Wakeham being forthcoming with the people of Newfoundland and Labrador regarding the details of the agreement.