Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, according to sources familiar with the situation as reported by CBC News. These sources, who requested anonymity, revealed that while a couple of unresolved issues persist, they are nearing resolution, with both governments aiming to formally announce the agreement early next week. A recent report from Montreal’s La Presse indicated that a deal has been struck, although a spokesperson from the N.L. premier’s office emphasized that no final agreement has been signed yet.
Ashley Politi, speaking on behalf of Tony Wakeham, stated that significant progress has been made in negotiations with Quebec and the Canadian government regarding a new deal for Churchill Falls and Gull Island, aiming to replace the 2024 Memorandum of Understanding (MOU). Meanwhile, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the reports at this time.
This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a revised agreement for the sale and development of Churchill Falls power. The original MOU, signed by former premier Andrew Furey in December 2024, intended to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island, another hydroelectric project on the Churchill River.
Although the MOU was supposed to be formalized by April 2026, this did not materialize. Subsequent to 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 has since refrained from further comments, insisting on finalizing a deal first.
Negotiations between Newfoundland and Labrador and Quebec resumed in June. Meanwhile, the opposition Liberals have voiced dissatisfaction with the lack of transparency in communicating the latest developments to the public. They emphasized the need for Premier Wakeham to be more forthcoming with information regarding the agreement to the residents of Newfoundland and Labrador.
