Quebec and Newfoundland Labrador are on the brink of finalizing a fresh agreement concerning Churchill Falls, as per sources familiar with the situation disclosed to CBC News. The sources, who requested anonymity, revealed that while two or three issues are still unresolved, significant progress has been made, and an official announcement is expected early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been struck, 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, confirmed that substantial advancements have been made in negotiations with Quebec and the Government of Canada regarding replacing the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island. Conversely, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at the moment. This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a revised agreement for the sale and development of Churchill Falls power.
Previously, Liberal former premier Andrew Furey had signed an MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and facilitate the development of Gull Island, another hydroelectric project on the Churchill River. Although the MOU was intended to be formalized 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, which concluded in the spring that the agreement was not in the public interest.
During his election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but he has refrained from further comments, emphasizing the need for reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.
Furthermore, the opposition Liberals have voiced discontent over the lack of transparency in the dissemination of information to the public. An emailed statement from the opposition highlighted that Newfoundlanders and Labradorians are relying on Quebec media for updates on the latest MOU developments, urging Premier Wakeham to be more forthcoming with the residents of Newfoundland and Labrador.
