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 only a few issues remain unresolved and that both governments are close to making 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 stated that no final agreement has been signed yet. However, Ashley Politi, speaking on behalf of Tony Wakeham, confirmed significant progress in negotiations with Quebec and the Government of Canada regarding a new deal for Churchill Falls and Gull Island.
On the other hand, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the reported information. This development follows a recent meeting between Wakeham and Fréchette in Prince Edward Island to discuss a new agreement for the sale and development of Churchill Falls power.
Former Liberal premier Andrew Furey had initially signed a Memorandum of Understanding with Quebec in December 2024, with the aim of replacing the contentious 1969 Churchill Falls contract and advancing the development of Gull Island. The formalization of the MOU by April 2026 did not materialize as planned.
Following the provincial election in October 2025, the new Progressive Conservative government called for an independent review of the MOU, which concluded in the spring that it was not in the public interest. Wakeham had pledged during the election campaign to subject the MOU to a referendum but has refrained from further comments, emphasizing the need for a deal to be reached first.
Negotiations between N.L. and Quebec recommenced in June. The opposition Liberals have voiced dissatisfaction with the lack of transparency in sharing information with the public. They stressed the importance of Premier Wakeham being forthcoming with Newfoundlanders and Labradorians about the developments in the MOU negotiations.
