Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement regarding Churchill Falls, as per sources familiar with the situation. The sources, who spoke on condition of anonymity, revealed that while two to three issues are yet to be resolved, significant progress has been made, and both governments are targeting an official announcement early next week. La Presse, a Montreal-based newspaper, has reported that a deal has been struck.
A spokesperson from the office of the N.L. premier clarified that no final agreement has been signed as of now. Ashley Politi, speaking on behalf of Tony Wakeham, stated that recent negotiations with Quebec and the Government of Canada have advanced significantly in replacing the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette refrained from confirming or denying the information at present. This development 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.
Previously, former Liberal premier Andrew Furey had signed an MOU with Quebec in December 2024, aiming to replace the contentious 1969 Churchill Falls contract and facilitate the development of Gull Island. The MOU, initially set to be formalized by April 2026, did not materialize. After the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU, which concluded that it was not in the public interest.
Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum but has since maintained that a deal must be reached first. Negotiations between N.L. and Quebec recommenced in June.
In response, the opposition Liberals have voiced frustration over the lack of transparency in disseminating information to the public. They emphasized the need for Premier Wakeham to be forthcoming with the people of Newfoundland and Labrador regarding the latest developments in the MOU negotiations.