Quebec and Newfoundland Labrador are nearing the completion of a fresh agreement regarding Churchill Falls, as per sources familiar with the situation informed CBC News. These sources, who requested anonymity, revealed that while a few unresolved issues remain, the two governments are on the verge of settling them, with plans to make an official announcement early next week.

A recent report from the Montreal-based publication La Presse indicated that a deal has been struck. However, a representative from the office of the N.L. premier stated that no final agreement has been formally signed at present.

Ashley Politi, spokesperson for Tony Wakeham, confirmed advancements in negotiations with Quebec and the Government of Canada regarding the replacement of the 2024 Memorandum of Understanding (MOU) with a new arrangement for Churchill Falls and Gull Island.

In response, a spokesperson for Quebec Premier Christine Fréchette mentioned that they cannot currently confirm or deny this information in French. This development follows a meeting between Wakeham and Fréchette in Prince Edward Island to discuss a revised agreement for the sale and development of Churchill Falls power.

Former Liberal premier Andrew Furey had initially signed the MOU with Quebec in December 2024 to replace the contentious 1969 Churchill Falls contract, with provisions for the development of Gull Island, an additional hydroelectric project on the Churchill River.

The MOU was set to be formalized by April 2026 but was not carried out. After the provincial election in October 2025, the new Progressive Conservative government initiated an independent review of the MOU by a committee, which later deemed it not serving the public interest.

During his election campaign, Wakeham pledged to subject the Churchill Falls MOU to a referendum but has refrained from further comments, emphasizing the necessity of reaching a deal first. Negotiations between N.L. and Quebec recommenced in June.

The opposition Liberals have voiced dissatisfaction over the lack of transparency in sharing information with the public regarding the latest MOU developments. They highlighted the need for Premier Wakeham to be forthcoming with Newfoundlanders and Labradorians about the agreement details.