Quebec and Newfoundland Labrador are on the verge of reaching a new agreement regarding Churchill Falls, according to sources familiar with the situation. The sources, who requested anonymity, indicated that a few unresolved issues 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, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet.
Ashley Politi, a spokesperson for Tony Wakeham, confirmed substantial progress 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. On the other hand, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at the moment.
This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a fresh agreement for the sale and development of Churchill Falls power. Former Liberal premier Andrew Furey initially signed the MOU with Quebec in December 2024, aiming to replace the contentious 1969 Churchill Falls contract and advance the Gull Island hydroelectric project.
The MOU was scheduled to be formalized by April 2026, but this deadline was not met. 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, who had pledged during the election to subject the MOU to a referendum, has since maintained that a deal must be reached first. Subsequent negotiations between N.L. and Quebec resumed in June.
In response to the manner in which information has been disseminated to the public, the opposition Liberals voiced frustration, emphasizing the need for transparency from Premier Wakeham regarding the latest MOU developments.
