Quebec and Newfoundland Labrador are on the verge of finalizing a fresh agreement regarding Churchill Falls, according to sources familiar with the situation as reported by CBC News. The sources, who preferred to remain anonymous, disclosed that while a few unresolved issues persist, significant progress has been made towards a resolution, with both governments aiming to make a formal announcement early next week.
A recent report by the Montreal-based newspaper La Presse indicated that a consensus has been reached, although a spokesperson from the N.L. premier’s office clarified that no definitive deal has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, stated, “We have made significant strides in our negotiations with Quebec and the Government of Canada to replace the 2024 MOU with a new agreement for Churchill Falls and Gull Island.”
In response, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at present. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a revised agreement for the sale and development of Churchill Falls power.
Former Liberal premier Andrew Furey initially inked a Memorandum of Understanding with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract, which also entailed the advancement of the Gull Island hydroelectric project on the Churchill River. The formalization of the MOU by April 2026 did not materialize, with the new Progressive Conservative government, elected in October 2025, commissioning an independent committee to review the MOU. The committee eventually deemed the MOU not in the public interest.
During his election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but he has since maintained that a deal must precede any such action. Negotiations between N.L. and Quebec recommenced in June.
Meanwhile, the opposition Liberals have voiced discontent with the lack of transparency surrounding the release of information to the public. Criticizing the dissemination of updates through Quebec media instead of by the local government, the opposition emphasized the need for transparency from Premier Wakeham regarding the agreement’s core elements.