Quebec and Newfoundland Labrador are nearing a fresh agreement concerning Churchill Falls, as per sources familiar with the situation who spoke to CBC News. The sources, who were not authorized to disclose information publicly, indicated that while a few unresolved issues remain, both governments are close to resolving them and are targeting an official announcement early next week.
A report from Montreal-based newspaper La Presse stated that a consensus has been achieved, although 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, affirmed progress in negotiations with Quebec and the Government of Canada to replace the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
In contrast, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at this time. 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 initially signed the MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract and pave the way for the development of Gull Island, a hydroelectric project on the Churchill River. The MOU, slated for formalization by April 2026, did not materialize after the provincial election in October 2025, prompting a review by a committee that deemed the MOU not in the public interest.
Wakeham, who had pledged a referendum on the Churchill Falls MOU during the election, has since emphasized the need for a deal to be reached first. Negotiations between N.L. and Quebec resumed in June.
Meanwhile, the opposition Liberals have criticized the lack of transparency in communicating the latest MOU developments to the public. They urged Premier Wakeham to be forthcoming with Newfoundlanders and Labradorians about the content of the agreement, highlighting concerns over hearing about the developments through Quebec media rather than official government channels.