Quebec and Newfoundland Labrador are on the brink of finalizing a new agreement concerning Churchill Falls, according to sources familiar with the situation. The sources, who requested anonymity, disclosed that while a couple of unresolved issues persist, both governments are nearing a resolution and are poised to make an official announcement early next week.
Reports from Montreal-based newspaper La Presse suggest that a deal has been struck, but a spokesperson from the N.L. premier’s office clarified that no definitive agreement has been signed as of now. Ashley Politi, speaking on behalf of Tony Wakeham, affirmed progress in negotiations with Quebec and the Canadian government to replace the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.
In contrast, a representative for Quebec Premier Christine Fréchette refrained from confirming or denying the information at this time. This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a fresh agreement for the sale and development of Churchill Falls power.
Former Liberal premier Andrew Furey initially signed the MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and to advance the Gull Island hydroelectric project on the Churchill River. Despite the MOU’s intended formalization by April 2026, it did not materialize. After the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which ultimately deemed it not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum but has since maintained that a deal must precede any such action. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, opposition Liberals have criticized the lack of transparency in disseminating information to the public. They expressed frustration over learning about the latest MOU developments through Quebec media rather than directly from the local government. The opposition called for Premier Wakeham to be forthcoming with the residents of Newfoundland and Labrador.