Quebec and Newfoundland Labrador are nearing a finalized agreement regarding Churchill Falls, according to sources familiar with the matter who spoke to CBC News on condition of anonymity. The sources indicated that there are a few remaining issues to be resolved, but both governments are on the verge of reaching a solution and are expected to make an official announcement early next week.
A report from La Presse, a newspaper based in Montreal, suggested that a deal has already been reached. However, 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, stated that significant progress has been made in recent negotiations with Quebec and the Government of Canada regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
In a French statement, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the information at this time. This development follows the meeting between Wakeham and Fréchette in Prince Edward Island, where they discussed a new agreement for the sale and development of Churchill Falls power.
The initial MOU signed by former Liberal premier Andrew Furey with Quebec in December 2024 aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island, another hydroelectric project on the Churchill River. The formalization of the MOU by April 2026 did not materialize, as the new Progressive Conservative government, following the October 2025 provincial election, initiated an independent review of the MOU. The review committee later concluded that the MOU was not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum. However, he has refrained from further comments, emphasizing the need to first reach a deal. Negotiations between N.L. and Quebec resumed in June.
The opposition Liberals have criticized the lack of transparency in the release of information to the public, expressing disappointment that Newfoundlanders and Labradorians are learning about the latest developments through Quebec media instead of directly from their government. The opposition emphasized the importance of transparency from Premier Wakeham in keeping the public informed.
