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, disclosed that a few unresolved issues are nearing resolution, with both governments aiming to make a formal announcement early next week. A report by Montreal-based newspaper, La Presse, indicated that a deal has been reached, though a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of yet.
Ashley Politi, speaking on behalf of Tony Wakeham, mentioned that significant progress has been made in recent negotiations with Quebec and the Government of Canada regarding the replacement of 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 stated in French that they cannot currently confirm or deny the information.
This development follows a 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 Liberal former premier Andrew Furey in December 2024, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island hydroelectric project on the Churchill River.
Despite expectations for the formalization of the MOU by April 2026, this did not occur. Following 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 the MOU was not in the public interest. Wakeham had also pledged during the election that the Churchill Falls MOU would be subjected to a referendum, but has since only emphasized the need to reach a deal first. Negotiations between N.L. and Quebec resumed in June.
In the midst of these developments, the opposition Liberals expressed dissatisfaction with the lack of transparency in the release of information to the public. They highlighted the need for Premier Wakeham to be more forthcoming with the people of Newfoundland and Labrador about the details of the agreement.
