Quebec and Newfoundland Labrador are nearing a finalized agreement on the Churchill Falls issue, according to sources familiar with the situation. These sources, who requested anonymity, indicated that while a few unresolved matters remain, both governments are on the verge of reaching a resolution and are expected to make a formal announcement early next week. A report in Montreal’s La Presse suggested that a deal has already been struck, although a spokesperson from the N.L. premier’s office clarified that no official agreement has been signed at present.
Ashley Politi, speaking on behalf of Tony Wakeham, stated that significant progress has been made in recent negotiations with Quebec and the Canadian government regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island. Conversely, a representative for Quebec Premier Christine Fréchette neither confirmed nor denied the reported information in a French statement.
This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a fresh agreement concerning the sale and development of power from Churchill Falls. The initial MOU, signed by former Liberal premier Andrew Furey in December 2024 with Quebec, aimed to replace the contentious 1969 Churchill Falls contract and also included provisions for the development of Gull Island, another hydroelectric project on the Churchill River.
Despite the expectation that the MOU would be formalized by April 2026, this did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which concluded in the spring that the agreement was not in the public’s best interest. Wakeham had pledged during the election campaign to subject the MOU to a referendum, but has since maintained that reaching a deal takes precedence.
Negotiations between Newfoundland and Labrador and Quebec resumed in June. Meanwhile, the opposition Liberals have voiced frustration over the manner in which information has been disclosed to the public, emphasizing the need for transparency from Premier Wakeham regarding the latest developments on the MOU.