Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, according to sources familiar with the situation who spoke to CBC News. The sources, who requested anonymity, indicated that there are a few unresolved issues, but both governments are making significant progress and are expected to make an official announcement early next week.
Although a report from Montreal-based newspaper La Presse suggested that a deal has been reached, 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 substantial advancements have been made in negotiations with both Quebec and the Government of Canada 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 neither confirmed nor denied the information at this time, emphasizing the ongoing nature of the discussions. 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.
The initial MOU, signed by Liberal former premier Andrew Furey with Quebec in December 2024, aimed to replace the controversial 1969 Churchill Falls contract and included plans for the development of Gull Island, another hydroelectric project on the Churchill River. The formalization of the MOU by April 2026 did not materialize, as the newly elected Progressive Conservative government called for an independent review of the agreement by a committee, which later determined that it was not in the public interest.
In response to the developments, the opposition Liberals have expressed dissatisfaction with the lack of transparency in communicating the latest information to the public. They emphasized the importance of Premier Wakeham being forthcoming with the people of Newfoundland and Labrador regarding the details of the agreement.
