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 spoke on condition of anonymity, revealed that while a few unresolved issues remain, significant progress has been made, and both governments are aiming to formally announce the agreement early next week.
Reports from the Montreal-based newspaper, La Presse, suggest that a deal has already been reached, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet. Ashley Politi, speaking on behalf of 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.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at present, following discussions between Wakeham and Fréchette in Prince Edward Island to explore a fresh agreement for the sale and development of Churchill Falls power.
Previously, former Premier Andrew Furey had signed an MOU with Quebec in December 2024 with the intention of replacing the contentious 1969 Churchill Falls contract and initiating the development of Gull Island hydroelectric project on the Churchill River. However, the formalization of the MOU by April 2026 did not materialize, as the new Progressive Conservative government, after the October 2025 provincial election, opted for an independent review of the agreement, which concluded that it was not in the public interest.
Amidst ongoing negotiations between N.L. and Quebec since June, concerns have been raised by the opposition Liberals regarding the lack of transparency in disseminating information to the public. The opposition emphasized the need for Premier Wakeham to be open and forthcoming with the residents of Newfoundland and Labrador regarding the latest developments in the MOU negotiations.
