Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, according to sources familiar with the situation who spoke to CBC News. The sources, who were not authorized to disclose information publicly, mentioned that while two or three issues remain unresolved, both governments are close to reaching 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 N.L. premier’s office clarified that no definitive agreement has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, stated 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 accord for Churchill Falls and Gull Island. On the other hand, a spokesperson for Quebec Premier Christine Fréchette expressed in French that they cannot confirm or deny the information at this moment.
The recent development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of Churchill Falls power. In December 2024, the Liberal former premier Andrew Furey initially signed an MOU with Quebec aimed at replacing the controversial 1969 Churchill Falls contract and advancing the Gull Island hydroelectric project on the Churchill River.
Although the MOU was expected to be formalized by April 2026, this 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 remained reserved since, emphasizing the necessity of reaching a deal first.
Negotiations between N.L. and Quebec resumed in June, with ongoing discussions. The opposition Liberals have voiced dissatisfaction with the lack of transparency in releasing information to the public, urging Premier Wakeham to be more forthcoming with the residents of Newfoundland and Labrador.
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