Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement regarding Churchill Falls, as confirmed by sources familiar with the situation to CBC News. The sources, who requested anonymity, revealed that there are a few unresolved issues, but they are nearing resolution, with both governments aiming to make an official announcement early next week. According to a report from Montreal-based newspaper La Presse, a deal has been reached, although a spokesperson from the N.L. premier’s office stated that no final agreement has been signed as of now.
Ashley Politi, speaking on behalf of Tony Wakeham, mentioned that significant progress has been made recently in negotiations with Quebec and the Government of Canada regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island. In response, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at the moment.
The latest developments follow a 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 was signed by former Liberal premier Andrew Furey in December 2024, with the aim of replacing the contentious 1969 Churchill Falls contract and advancing the Gull Island hydroelectric project on the Churchill River.
Although the formalization of the MOU was anticipated by April 2026, it did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee, which later concluded that the agreement was not in the public interest. Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum, but he has since remained reserved, emphasizing the necessity of reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, the opposition Liberals have expressed discontent with the lack of transparency in disseminating information to the public. The opposition emphasized the need for Premier Wakeham to be forthcoming with the people of Newfoundland and Labrador regarding the latest MOU developments, rather than the information being primarily sourced from Quebec media.