Quebec and Newfoundland Labrador are nearing a resolution on the Churchill Falls agreement, according to sources familiar with the situation. The sources, who requested anonymity, revealed that while a few issues remain unresolved, both governments are on the verge of reaching a final agreement, with plans to announce it formally early next week. A recent report from the Montreal-based newspaper, La Presse, suggested that a deal has already been struck. However, a spokesperson from the N.L. premier’s office clarified that no official agreement has been signed yet.
Ashley Politi, speaking on behalf of Tony Wakeham, stated that significant progress has been made in 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 recent 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 in December 2024, aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island hydroelectric project.
Despite expectations for the formalization of the MOU by April 2026, this did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, concluding that it was not in the public interest. Wakeham, who had pledged during the election to subject the MOU to a referendum, has emphasized the need to secure a deal first before moving forward.
Negotiations between Newfoundland and Labrador and Quebec resumed in June, with ongoing efforts to reach a mutually beneficial agreement. The opposition Liberals have voiced concerns over the lack of transparency in communicating the latest developments surrounding the MOU, urging Premier Wakeham to provide more openness and clarity to the people of Newfoundland and Labrador.