Quebec and Newfoundland Labrador are reportedly nearing a finalized agreement concerning Churchill Falls, according to sources familiar with the situation as revealed to CBC News. The sources, who requested anonymity, mentioned that a few unresolved issues remain, but they are on the brink of resolution, with both governments aiming to make an official announcement early next week. A report from Montreal-based newspaper La Presse indicated that a deal has been reached, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed at this time.
Ashley Politi, a spokesperson for Tony Wakeham, confirmed that substantial progress has been made in recent negotiations with Quebec and the Canadian government regarding replacing the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island. Conversely, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at present.
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. Initially, Liberal former premier Andrew Furey signed an MOU with Quebec in December 2024, intended to replace the contentious 1969 Churchill Falls contract and facilitate the development of Gull Island.
The MOU was expected to be formalized by April 2026 but remained pending. After 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 promised during the election campaign that the Churchill Falls MOU would undergo a referendum, but he has since maintained that a deal must be reached first. Subsequent negotiations between N.L. and Quebec resumed in June.
Meanwhile, the opposition Liberals expressed dissatisfaction with the dissemination of information to the public, highlighting the need for transparency from Premier Wakeham in keeping Newfoundlanders and Labradorians informed directly rather than through external sources.