Quebec and Newfoundland Labrador are nearing a resolution on the Churchill Falls agreement, according to sources familiar with the situation. The sources, who requested anonymity, indicated that while a few issues remain unresolved, the two governments are on the brink of reaching a final agreement, with plans to make an official announcement early next week. Reports from La Presse, a Montreal-based newspaper, suggest that a deal has already been struck.
A spokesperson from the office of the N.L. premier clarified that no definitive agreement has been signed as of now. However, Ashley Politi, representing Tony Wakeham, stated that substantial 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 pact for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette expressed neither confirmation nor denial of the information currently. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new arrangement 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 longstanding 1969 Churchill Falls contract, with provisions for the development of the Gull Island hydroelectric project. The MOU was expected to be formalized by April 2026, but that deadline was not met. Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which concluded that it was not in the public interest.
During the election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum, but he has since emphasized the need to secure a deal first. 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, urging Wakeham to be more forthcoming with the details of the agreement. They highlighted that news of the latest developments has primarily come from Quebec media rather than from the local government.