Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, according to sources familiar with the situation. The sources, who requested anonymity, mentioned that although two or three issues are still unresolved, they are nearing a resolution, with both governments aiming to make an official announcement early next week.
Reports from Montreal-based newspaper, La Presse, suggest that a deal has already been reached. However, 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, 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.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at this time. 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 former Liberal Premier Andrew Furey, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island. The MOU was initially scheduled for formalization by April 2026 but faced delays. After the 2025 provincial election, the new Progressive Conservative government called for an independent review of the MOU, which concluded that it was not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but he has since stressed the importance of reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, the opposition Liberals are dissatisfied with the lack of transparency surrounding the release of information to the public. They emphasized the need for Premier Wakeham to be more forthcoming with Newfoundlanders and Labradorians regarding the ongoing developments in the MOU negotiations.
