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, speaking on condition of anonymity, revealed that while a few unresolved issues remain, both governments are close to reaching a resolution and are expected to make an official announcement early next week.
A report from Montreal’s La Presse suggested that a deal has already been reached, but a spokesperson from the N.L. premier’s office clarified that no final 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 Canadian government regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
In response, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information. 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.
Former Liberal premier Andrew Furey had initially signed the MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and to advance the Gull Island hydroelectric project on the Churchill River. The formalization of the MOU by April 2026 did not materialize. 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.
Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum. However, he has since maintained that a deal must be reached first. Negotiations between Newfoundland and Labrador and Quebec resumed in June.
In the midst of these developments, the opposition Liberals have criticized the lack of transparency in how information is being shared with the public. They emphasized the importance of Premier Wakeham being open and forthcoming with the people of Newfoundland and Labrador regarding the details of the agreement.