Quebec and Newfoundland Labrador are on the verge of sealing a fresh agreement concerning Churchill Falls, as per sources familiar with the situation who have informed CBC News. The insiders, who preferred to remain anonymous, disclosed that while a few issues still need resolution, both governments are nearing a final resolution and are expected to make an official announcement early next week. According to a report by La Presse, a deal has already been struck, although a spokesperson from the N.L. premier’s office emphasized that no definitive agreement has been signed yet. Ashley Politi, speaking for Tony Wakeham, mentioned that significant progress has been made in recent negotiations with Quebec and the Government of Canada to replace the 2024 Memorandum of Understanding with a new arrangement for Churchill Falls and Gull Island. Quebec Premier Christine Fréchette’s spokesperson neither confirmed nor denied the information at this time in a statement made in French.
The recent progress 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. The initial Memorandum of Understanding was signed by former Liberal premier Andrew Furey with Quebec in December of 2024, aiming to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island hydroelectric project on the Churchill River. The MOU was expected to be formalized by April 2026, but that 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 MOU was against the public interest. Wakeham had promised during the election campaign that the MOU would be subject to a referendum, but he has since maintained that a deal must be reached first. Negotiations between Newfoundland and Labrador and Quebec recommenced in June.
In the midst of these developments, the opposition Liberals have expressed dissatisfaction with the handling of information disclosure to the public. Criticizing the lack of transparency, a statement from the opposition highlighted the frustration among Newfoundlanders and Labradorians for being informed about the latest MOU updates through Quebec media rather than directly from their government. The statement stressed the importance of Premier Wakeham being transparent with the residents of Newfoundland and Labrador.