Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, as confirmed by sources familiar with the situation to CBC News. The sources, who requested anonymity, disclosed that while two or three issues remain unresolved, significant progress has been made, and both governments are expected to formally announce the agreement early next week. La Presse, a Montreal-based newspaper, has already reported that a deal has been reached. However, a spokesperson from the N.L. premier’s office clarified that no definitive agreement has been signed yet.
Ashley Politi, a spokesperson for Tony Wakeham, mentioned that substantial headway has been made 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. Conversely, a spokesperson for Quebec Premier Christine Fréchette stated that they cannot confirm or deny the information at present.
This progress 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 initial MOU, signed by former Liberal Premier Andrew Furey, aimed to end the contentious 1969 Churchill Falls contract and included provisions for the development of Gull Island on the Churchill River.
Despite the initial plan to formalize the MOU by April 2026, no concrete steps were taken. Following the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU, which concluded that it was not in the public interest. Wakeham had previously pledged to subject the MOU to a referendum during the election but has since emphasized the need for reaching a deal first.
Negotiations between Newfoundland and Labrador and Quebec resumed in June, with ongoing discussions surrounding the agreement. In response, the opposition Liberals expressed dissatisfaction with the lack of transparency in sharing information with the public. They urged Premier Wakeham to be more forthcoming with Newfoundlanders and Labradorians regarding the latest developments concerning the MOU.