Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, as per sources familiar with the situation as confirmed to CBC News. The sources, who were not authorized to disclose information publicly, mentioned that while two or three issues are still unresolved, they are nearing a resolution, with both governments aiming to make an official announcement early next week. According to reports from Montreal-based newspaper La Presse, an agreement has been struck. However, a spokesperson from the N.L. premier’s office clarified that no final deal has been signed yet.
Ashley Politi, a spokesperson for Tony Wakeham, stated, “We can confirm that in recent days we have made significant progress in our negotiations with both Quebec and the Government of Canada regarding replacing the 2024 MOU with a new deal for Churchill Falls and Gull Island.” On the other hand, a spokesperson for Quebec Premier Christine Fréchette mentioned in French that they cannot confirm or deny the information at present.
This development follows a meeting between Wakeham and Fréchette in Prince Edward Island, where they discussed a new agreement for the sale and development of Churchill Falls power. The Memorandum of Understanding signed by former Liberal premier Andrew Furey with Quebec in December 2024, aimed at replacing the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island, has not been formalized as expected by April 2026. 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.
Wakeham, during the election, pledged 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. The opposition Liberals have expressed frustration over the lack of transparency in sharing information about the latest MOU developments with the public, urging Premier Wakeham to be more forthcoming with Newfoundlanders and Labradorians.