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 that are nearing resolution, with both governments aiming to make an official announcement early next week.
Reports from a Montreal-based newspaper, La Presse, suggested that a deal has already been reached; however, 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, mentioned that significant progress has been made in recent negotiations with Quebec and the Government of Canada regarding replacing the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
This development follows a meeting between Wakeham and Quebec Premier Christine 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 aimed to replace the contentious 1969 Churchill Falls contract and also included plans for the development of Gull Island.
Despite the MOU’s intended formalization by April 2026, it did not come to fruition. Following the 2025 provincial election, the new Progressive Conservative government initiated an independent review of the MOU by a committee, which later concluded that it was not in the public interest. Wakeham had previously pledged to subject the Churchill Falls MOU to a referendum during the election but has since maintained that a deal must be reached first.
Negotiations between Newfoundland and Labrador and Quebec recommenced in June. Meanwhile, the opposition Liberals have expressed discontent with the lack of transparency in releasing information to the public. They emphasized the need for Premier Wakeham to be open and forthcoming with the residents of Newfoundland and Labrador regarding the details of the agreement.
