Quebec and Newfoundland Labrador are reportedly nearing a fresh agreement concerning Churchill Falls, as per sources familiar with the situation. The sources, who preferred not to speak publicly, mentioned that while a few issues remain unresolved, the two governments are on the verge of reaching a resolution and are expected to formally announce the agreement early next week. La Presse, a Montreal-based newspaper, has mentioned that a deal has been struck according to reports. However, a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of now.
Ashley Politi, a spokesperson for Tony Wakeham, confirmed substantial progress in negotiations with Quebec and the Government of Canada regarding 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 at the moment. This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of power at Churchill Falls.
The initial Memorandum of Understanding between former Liberal premier Andrew Furey and Quebec, signed in December 2024, aimed to replace the controversial 1969 Churchill Falls contract and also proposed the development of Gull Island, an ongoing hydroelectric project on the Churchill River. The MOU that was anticipated to be formalized by April 2026 did not materialize. After the provincial election in October 2025, the new Progressive Conservative government requested an independent review of the MOU, which concluded in the spring that it was not in the public interest.
During the election, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but has since remained reserved, emphasizing the need for a deal to be reached first. Negotiations between Newfoundland and Labrador and Quebec resumed in June.
The opposition Liberals have expressed dissatisfaction with the way information has been disseminated to the public, stating that Newfoundlanders and Labradorians are learning about the latest MOU updates through Quebec media rather than their own government. They highlighted the importance of transparency from Premier Wakeham in keeping the residents informed about the agreement’s core details.
