Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, according to sources familiar with the situation. The sources, who spoke on condition of anonymity, indicated that there are a few unresolved issues, but significant progress has been made, with an official announcement expected early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been reached, although the N.L. premier’s office has not confirmed the finalization of the agreement.
Ashley Politi, a spokesperson for Tony Wakeham, stated that recent negotiations with Quebec and the Government of Canada have made substantial headway in replacing the 2024 Memorandum of Understanding (MOU) with a new deal concerning Churchill Falls and Gull Island. On the other hand, a representative for Quebec Premier Christine Fréchette neither confirmed nor denied the information in question.
This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a renewed 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 hydroelectric project on the Churchill River.
Despite the original timeline for formalizing the MOU by April 2026 going unmet, the new Progressive Conservative government requested an independent review of the MOU following the October 2025 provincial election. The subsequent committee report concluded that the MOU was not in the public interest. Wakeham’s commitment to subject the Churchill Falls MOU to a referendum during the election has not materialized, with the focus now on reaching a deal first.
Negotiations between Newfoundland and Labrador and Quebec resumed in June to address the outstanding issues. In response, the opposition Liberals have expressed dissatisfaction with the lack of transparency in the release of information to the public. They emphasized the importance of Premier Wakeham being forthcoming with the citizens of Newfoundland and Labrador about the details of the agreement.