Muhammad Amanullah | August 13, 2026
The True Post (News Desk) — Major progress has been reported in negotiations between Quebec and Newfoundland and Labrador over a new agreement concerning the Churchill Falls hydroelectric project.
Sources familiar with the matter say the two provincial governments are now very close to reaching a new agreement, with only a few outstanding issues remaining. The final points are expected to be resolved soon, potentially paving the way for an official announcement early next week.
However, the office of Newfoundland and Labrador Premier Tony Wakeham has stressed that no final agreement has yet been signed.
Major Progress in Negotiations
Ashley Polletti, a spokesperson for Premier Tony Wakeham, said significant progress has been made over the past several days in talks involving Quebec and the federal government.
According to Polletti, the two governments are working on a new agreement concerning Churchill Falls and the Gull Island project that would replace the 2024 memorandum of understanding.
A spokesperson for Quebec Premier Christine Fréchette also declined to immediately confirm or deny the reports, saying they could neither confirm nor deny the information at this time.
Why Churchill Falls Matters
Churchill Falls is one of Canada’s most important hydroelectric projects.
The facility is located in Newfoundland and Labrador, but the sale of its electricity and the revenues generated from the project have long been closely linked to Quebec.
The two provinces signed the original Churchill Falls power agreement in 1969.
The agreement has long been viewed as unfair in Newfoundland and Labrador and has become one of the most sensitive issues in provincial politics.
The proposed new agreement aims to replace the decades-old arrangement with a new framework that would give Newfoundland and Labrador greater consideration in the distribution of electricity and the economic benefits generated by Churchill Falls.
The 2024 Memorandum of Understanding
The current negotiations are based partly on a memorandum of understanding signed in December 2024 between the former Liberal government led by Premier Andrew Furey and the Quebec government.
The agreement was intended to establish a framework for replacing the controversial 1969 arrangement.
The 2024 memorandum also included plans for the development of a major hydroelectric project at Gull Island on the Churchill River.
Gull Island has been discussed for many years as a potential major hydroelectric development project.
2024 Agreement Never Became Final
The 2024 memorandum of understanding was supposed to be converted into a formal agreement by April 2026, but that process was not completed by the deadline.
Following the October 2025 provincial election, a new Progressive Conservative government took office in Newfoundland and Labrador.
The new government established a committee to independently review the agreement negotiated by the previous administration.
Earlier this year, the committee released its report and concluded that the 2024 memorandum of understanding was not in the public interest.
Referendum Promise
During the election campaign, Premier Tony Wakeham also promised that the Churchill Falls memorandum of understanding would be put to a public referendum.
However, since taking office, Wakeham has provided few details about how or when such a referendum might take place.
His position has been that a new agreement must first be reached before the government can determine the next steps.
Negotiations between Quebec and Newfoundland and Labrador resumed in June and have now entered a critical stage.
Opposition Raises Concerns
Meanwhile, Newfoundland and Labrador’s Liberal opposition has expressed strong concerns about the government’s handling of information surrounding the negotiations.
The opposition argues that residents of the province are once again learning about the Churchill Falls negotiations through Quebec media before receiving information from their own government.
Opposition members have called on Premier Tony Wakeham to release details of the proposed agreement to the public.
They also point to reports suggesting that a new deal may already have been reached, while warning that some of its key provisions could closely resemble those contained in the previous memorandum of understanding.
Waiting for a Final Announcement
Although sources say the two governments are very close to reaching a new agreement, Newfoundland and Labrador officials have emphasized that no final deal has been signed yet.
Attention is now focused on negotiations over the next several days.
If the remaining two or three key issues are resolved, the governments could potentially announce a new agreement covering Churchill Falls and Gull Island early next week.
Such an agreement could significantly reshape the decades-old energy dispute between Quebec and Newfoundland and Labrador.
It could also have major long-term implications for Newfoundland and Labrador’s hydroelectric revenues and the future development of Gull Island.
