Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, as per sources familiar with the situation disclosed to CBC News. The sources, who spoke on condition of anonymity, mentioned that only a couple of unresolved issues remain, and both governments are close to resolving them, with plans to announce the agreement formally early next week.
There have been reports in the Montreal-based newspaper, La Presse, claiming that a deal has been struck. However, a spokesperson from the office of the N.L. premier clarified that no final agreement has been signed as of now. Ashley Politi, speaking for Tony Wakeham, stated that significant progress has been made recently 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.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette stated in French that they cannot confirm or deny the information at this time. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island a few weeks ago to discuss a new agreement pertaining to the sale and development of Churchill Falls power.
The former Liberal premier, Andrew Furey, initially signed an MOU with Quebec in December 2024, aiming to replace the contentious 1969 Churchill Falls contract and also involving the development of Gull Island, another hydroelectric project on the Churchill River.
Although the MOU was supposed to be formalized by April 2026, it did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government commissioned an independent review of the MOU by a committee, which later determined that it was not in the public interest.
Wakeham had pledged during the election campaign that the Churchill Falls MOU would be subject to a referendum. However, he has since remained tight-lipped, emphasizing the need for reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.
In the midst of these developments, opposition Liberals have expressed dissatisfaction with the dissemination of information to the public. They criticized the lack of transparency from Premier Wakeham’s government, stating that Newfoundlanders and Labradorians are relying on Quebec media for updates on the latest MOU progress instead of receiving direct communication from their own government.