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 there are a few unresolved issues but significant progress has been made, with an official announcement expected early next week. Reports from a Montreal-based newspaper suggest that a deal has already been reached, although a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed as of now.
Ashley Politi, speaking on behalf of Tony Wakeham, stated that substantial advancements have been made 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 recent development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a fresh 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 on the Churchill River.
Despite the MOU’s intended formalization by April 2026, it never materialized. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which later concluded that it was not in the public interest. Wakeham had pledged during the election campaign to subject the MOU to a referendum but has since maintained that a deal must be reached first. Negotiations between Newfoundland and Labrador and Quebec recommenced in June.
In the midst of these developments, opposition Liberals criticized the lack of transparency in the dissemination of information to the public. They expressed disappointment in learning about the latest MOU updates through Quebec media rather than directly from the local government, emphasizing the need for Premier Wakeham to be more open with the people of Newfoundland and Labrador.