Quebec and Newfoundland Labrador are nearing a finalized agreement regarding Churchill Falls, as per sources familiar with the situation informed CBC News. The sources, speaking on condition of anonymity, mentioned that only a couple of issues remain unresolved but are on the brink of resolution, with both governments aiming to formally announce the agreement early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been reached, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of now.
Ashley Politi, a spokesperson for Tony Wakeham, stated that significant progress has been made in recent 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. In response, a representative for Quebec Premier Christine Fréchette neither confirmed nor denied the information at the moment.
This development follows 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, signed by Liberal former premier Andrew Furey, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island, another hydroelectric project on the Churchill River.
The MOU, which was expected to be formalized by April 2026, was not realized, prompting the new Progressive Conservative government after the October 2025 provincial election to call for an independent review by a committee, which eventually concluded that the MOU was not in the public interest. Wakeham had also promised during the election campaign to subject the Churchill Falls MOU to a referendum but has since maintained that reaching a deal is the priority.
Negotiations between Newfoundland and Labrador and Quebec resumed in June, with the opposition Liberals expressing dissatisfaction at the lack of transparency in releasing information to the public. They emphasized the importance of Premier Wakeham being forthcoming with the citizens of Newfoundland and Labrador.