Quebec and Newfoundland Labrador are nearing a fresh agreement regarding Churchill Falls, as per sources familiar with the situation revealed to CBC News. The sources, who were not authorized to disclose information publicly, indicated that only a few unresolved issues remain, and both governments are on the verge of making an official announcement early next week. Reports from Montreal-based newspaper La Presse suggest that a deal has been struck. However, a spokesperson from the N.L. premier’s office clarified that no final agreement has been formalized at present.
Ashley Politi, speaking on behalf of Tony Wakeham, remarked, “We have made substantial progress recently in discussions 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 representative for Quebec Premier Christine Fréchette stated in French that she cannot confirm or deny the information at this time.
These developments follow a meeting between Wakeham and Fréchette in Prince Edward Island to explore a new contract for the sale and development of Churchill Falls power. Former Liberal premier Andrew Furey initially signed an MOU with Quebec in December 2024, aiming to replace the contentious 1969 Churchill Falls agreement and also outlining plans for the Gull Island hydroelectric project on the Churchill River.
The MOU was anticipated to be formalized by April 2026, which did not materialize. 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 agreement was not in the public interest. Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum but has since maintained that a deal must be reached first. Negotiations between N.L. and Quebec resumed in June.
In the midst of these developments, opposition Liberals have expressed dissatisfaction with the manner in which information has been disseminated to the public. A statement from the opposition criticized the lack of transparency from the government in keeping citizens informed about the latest MOU developments. The statement emphasized the importance of Premier Wakeham being open and honest with the people of Newfoundland and Labrador.