Negotiations between Quebec and Newfoundland Labrador regarding Churchill Falls are nearing completion, according to sources familiar with the situation. The sources, who requested anonymity, disclosed that a few unresolved issues remain, but both governments are on the verge of reaching an agreement and are expected to make an official announcement early next week.
Although La Presse, a Montreal-based newspaper, reported that a deal has been struck, a spokesperson from the office of the Newfoundland and Labrador premier clarified that no final agreement has been signed yet. Ashley Politi, speaking on behalf of Tony Wakeham, confirmed that significant progress has been made in recent discussions with Quebec and the Canadian government to replace the 2024 Memorandum of Understanding (MOU) with a new deal for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette stated in French that they cannot confirm or deny the information presently. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to explore a new agreement for the sale and development of power at Churchill Falls.
The initial MOU was signed in December 2024 by former Liberal premier Andrew Furey, aiming to replace the contentious 1969 Churchill Falls contract and pave the way for the development of the Gull Island hydroelectric project on the Churchill River. Despite expectations for formalization by April 2026, the agreement was not finalized. Subsequently, the new Progressive Conservative government, elected in October 2025, called for an independent review of the MOU, which concluded that it was not in the public interest.
Wakeham had pledged during the election campaign that any deal related to Churchill Falls would be subject to a referendum. However, he has since refrained from providing further details, emphasizing the need for a finalized agreement first. Negotiations between Newfoundland and Labrador and Quebec resumed in June.
Meanwhile, the opposition Liberals have expressed dissatisfaction with the lack of transparency in communicating the latest developments on the MOU to the public. They highlighted the reliance on Quebec media for information and urged Premier Wakeham to be more forthcoming with the residents of Newfoundland and Labrador.