Quebec and Newfoundland Labrador are on the verge of reaching a fresh agreement concerning Churchill Falls, according to insiders familiar with the situation as disclosed to CBC News. The sources, who spoke on condition of anonymity, revealed that while there are a few remaining issues, both governments are nearing a resolution and intend to officially announce the progress early next week. La Presse, a Montreal-based newspaper, has indicated that a deal has been struck. Nevertheless, a spokesperson from the N.L. premier’s office clarified that no final agreement has been signed yet.

Ashley Politi, speaking on behalf of Tony Wakeham, stated, “We have recently made substantial strides in negotiations with Quebec and the Government of Canada to replace the 2024 MOU with a new arrangement for Churchill Falls and Gull Island.” On the other hand, a representative for Quebec Premier Christine Fréchette declined to confirm or deny the reports at this time in French.

This development follows the meeting between Wakeham and Fréchette in Prince Edward Island a few weeks ago to discuss a new agreement for the sale and development of Churchill Falls power. The initial Memorandum of Understanding signed by Liberal former premier Andrew Furey with Quebec in December 2024 aimed to replace the contentious 1969 Churchill Falls contract and included plans for the development of Gull Island hydroelectric project.

Although the MOU was slated for formalization by April 2026, it never materialized. Following the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU by a committee, which later concluded that the agreement was not in the public interest. Wakeham, during his election campaign, pledged to subject the Churchill Falls MOU to a referendum but has since refrained from further comments, emphasizing the necessity of reaching a deal first.

Negotiations between Newfoundland and Labrador and Quebec recommenced in June. The opposition Liberals have voiced dissatisfaction with the lack of transparency in disseminating information to the public. They urged Premier Wakeham to be forthcoming with Newfoundlanders and Labradorians regarding the latest developments on the MOU.