Quebec and Newfoundland Labrador are on the brink of finalizing a fresh agreement concerning Churchill Falls, according to sources familiar with the situation who spoke to CBC News. The sources, who preferred to remain anonymous, indicated that although a couple of unresolved issues remain, they are nearing resolution, with both governments aiming to make an official announcement early next week. Reports from the Montreal-based newspaper, La Presse, suggest that a deal has been struck. Despite this, a spokesperson from the N.L. premier’s office clarified that no definitive agreement has been signed as of now.
Spokesperson Ashley Politi, representing Tony Wakeham, stated, “We have made significant progress in our discussions 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.” Meanwhile, Quebec Premier Christine Fréchette’s spokesperson, speaking in French, neither confirmed nor denied the information at this time.
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 Churchill Falls power. The Liberal former premier, Andrew Furey, originally signed an MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract, which also included plans for the development of Gull Island.
The MOU was supposed to be formalized by April 2026 but that did not materialize. After the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee, which later concluded that it was not in the public interest. Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum but has since remained tight-lipped, emphasizing the need for a deal to be reached first. Negotiations between N.L. and Quebec resumed in June.
In the midst of these developments, the opposition Liberals have voiced dissatisfaction with the lack of transparency in releasing information to the public. They emphasized the importance of Premier Wakeham being forthcoming with the people of Newfoundland and Labrador.
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