Quebec and Newfoundland Labrador are on the verge of finalizing a new agreement regarding Churchill Falls, as per insiders familiar with the situation informed CBC News. The sources, who chose to remain anonymous, revealed that while a few unresolved issues persist, both governments are nearing a resolution and are expected to make an official announcement early next week. La Presse, a publication based in Montreal, has also reported that a deal has been struck.

Although a spokesperson from the N.L. premier’s office mentioned that no definitive agreement has been signed yet, progress has been significant in the recent discussions with Quebec and the Government of Canada. Ashley Politi, representing Tony Wakeham, stated that negotiations surrounding the replacement of the 2024 MOU with a new deal for Churchill Falls and Gull Island have advanced considerably.

On the other hand, a spokesperson for Quebec Premier Christine Fréchette neither confirmed nor denied the reported developments at this time. The latest progress follows a meeting between Wakeham and Fréchette in Prince Edward Island to explore a new agreement concerning the sale and development of Churchill Falls power.

In December 2024, former Liberal Premier Andrew Furey initially signed a Memorandum of Understanding with Quebec, aiming to replace the contentious 1969 Churchill Falls contract. The agreement also included plans for the development of Gull Island, another hydroelectric project situated on the Churchill River.

Despite the initial expectation of formalizing the MOU by April 2026, this did not materialize. Following the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU, which concluded that the agreement was not in the public interest. Wakeham had pledged during the election campaign to subject the Churchill Falls MOU to a referendum, but he has since emphasized the necessity of reaching a deal first.

Negotiations between Newfoundland and Labrador and Quebec recommenced in June. The opposition Liberals have expressed discontent with the way information has been disseminated to the public, highlighting the need for transparency from Premier Wakeham regarding the latest developments in the MOU negotiations.