Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, according to sources familiar with the situation. These sources, who requested anonymity, revealed that while a few issues remain unresolved, significant progress has been made, and both governments are expected to make an official announcement early next week.
Reports from Montreal-based newspaper, La Presse, suggest that a deal has already been reached. However, a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of now.
Ashley Politi, speaking on behalf of Tony Wakeham, stated that recent negotiations with Quebec and the Government of Canada have advanced significantly in replacing the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information in question at this time. This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement concerning the sale and development of Churchill Falls power.
In December 2024, former Liberal premier Andrew Furey signed an MOU with Quebec to replace the contentious 1969 Churchill Falls contract, with provisions for the development of Gull Island, another hydroelectric project on the Churchill River.
Despite the expectation that the MOU would be formalized by April 2026, this did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU by a committee, which concluded that the agreement was not in the public interest.
During the election, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but has since refrained from further comments, emphasizing the necessity of reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.
The opposition Liberals have voiced dissatisfaction with the lack of transparency in the release of information to the public. They criticized the fact that Newfoundlanders and Labradorians are learning about the latest developments through Quebec media rather than directly from their own government, emphasizing the need for Premier Wakeham to be more forthcoming with information.