Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, according to sources familiar with the situation. These sources, who were not authorized to disclose information publicly, revealed that while two or three issues are still pending, they are nearing resolution, with both governments expected to make an official announcement early next week.
A report from La Presse, a Montreal-based newspaper, suggested that a deal has already been reached. However, a spokesperson from the office of the N.L. premier emphasized that no final agreement has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, stated 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.
In a statement in French, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the reports. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of power at Churchill Falls.
The initial MOU, signed by Liberal former premier Andrew Furey in December 2024, aimed to replace the controversial 1969 Churchill Falls contract and included provisions for the development of Gull Island, another hydroelectric project on the Churchill River. The MOU was expected to be formalized by April 2026, but this did not materialize.
Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU by a committee. The committee later concluded that the MOU was not in the public interest. Wakeham, who had promised during the election to subject the MOU to a referendum, has since maintained that a deal must be reached first.
Negotiations between Newfoundland and Labrador and Quebec resumed in June. The opposition Liberals are voicing frustration over the lack of transparency in how information about the developments is being shared with the public. The opposition emphasized the need for Premier Wakeham to be more forthcoming with Newfoundlanders and Labradorians regarding the agreement’s details.