Quebec and Newfoundland Labrador are on the verge of finalizing a fresh agreement regarding Churchill Falls, according to sources familiar with the situation as confirmed by CBC News. These sources, who requested anonymity, mentioned that while a few unresolved issues remain, they are nearing resolution, with both governments aiming to make an official announcement early next week. A report from Montreal’s La Presse indicated that a deal has been reached. However, a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet.
Ashley Politi, speaking for Tony Wakeham, stated, “We have made significant progress in recent days in negotiations with Quebec and the Government of Canada regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new arrangement 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 with Quebec in December 2024, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the Gull Island hydroelectric project on the Churchill River.
Although the formalization of the MOU was anticipated by April 2026, it did not materialize. After the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU. Subsequently, a committee concluded in the spring that the MOU was not in the public interest.
Wakeham had pledged during the election campaign that the Churchill Falls MOU would undergo a referendum. However, he has since maintained that a deal must be reached first. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, the opposition Liberals have voiced dissatisfaction with the handling of information disclosure to the public. In an emailed statement, the opposition emphasized the need for transparency from Premier Wakeham regarding the latest developments related to the MOU, which were initially reported by Quebec media rather than through official channels.