Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, as per sources familiar with the situation who spoke to CBC News. The sources, who requested anonymity, revealed that while a few issues are still unresolved, significant progress has been made, and both governments are targeting an official announcement early next week.
Although Montreal-based newspaper La Presse reported that a deal has been reached, a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of now. Ashley Politi, representing Tony Wakeham, stated that substantial advancements have been made in negotiations with Quebec and the Government of Canada to replace the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
In response to the news, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at this time. This recent development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new arrangement for the sale and development of Churchill Falls power.
Former Liberal Premier Andrew Furey had signed the MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and facilitate the development of Gull Island hydroelectric project on the Churchill River. The expected formalization of the MOU by April 2026 did not materialize, and after the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which concluded that it was not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum but has since emphasized the necessity of reaching a deal first. Negotiations between Newfoundland and Labrador and Quebec recommenced in June.
Meanwhile, the opposition Liberals have voiced dissatisfaction with the lack of transparency in disseminating information to the public. They emphasized the need for Premier Wakeham to be forthcoming with the people of Newfoundland and Labrador regarding the details of the new agreement.
