Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, as per sources familiar with the situation who have informed CBC News. The sources, speaking on condition of anonymity, indicated that while a few issues remain unresolved, both governments are nearing a resolution and are expected to make an official announcement early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been struck.
A spokesperson from the office of the N.L. premier stated that no definitive agreement has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, mentioned significant progress in negotiations with Quebec and the Canadian government regarding replacing the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.
In response, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information currently. 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 an MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and advance the Gull Island hydroelectric project on the Churchill River. The formalization of this MOU was anticipated by April 2026 but did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government requested an independent review of the MOU by a committee, which later deemed it not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but has since remained cautious, emphasizing the necessity of reaching a deal. Negotiations between Newfoundland and Labrador and Quebec recommenced in June.
In the midst of these developments, opposition Liberals voiced frustration over the lack of transparency in disseminating information to the public. They emphasized the need for Premier Wakeham to keep residents informed directly rather than through external sources.