After a recent change in leadership in Newfoundland and Labrador, there is uncertainty surrounding the province’s significant hydroelectric agreement with Quebec. The new deal, referred to as the Churchill Falls MOU, aims to replace the longstanding 1969 contract, which was deemed unfavorable to Newfoundland and Labrador. Signed in December, the MOU includes plans for multiple hydroelectric projects, including the anticipated Gull Island project set for completion in 2035.
Newfoundland and Labrador Hydro and Hydro-Québec had intentions to construct a new plant at Churchill Falls and enhance production at the existing Churchill Falls complex. Following the Progressive Conservative party’s victory under Tony Wakeham’s leadership, doubts have been raised regarding the future of the hydroelectric agreement.
Wakeham, the premier-designate, has vowed not to finalize any deals related to the Churchill River without approval from the public through a referendum. In his victory speech, Wakeham expressed his commitment to developing Churchill Falls and Gull Island, electrifying Labrador, and utilizing local resources for community benefits. He emphasized the end of a passive government approach and asserted the province’s authority in resource management decisions.
Wakeham has pledged to conduct an independent review of the existing agreement and promised transparency by sharing the review outcomes with the public. If necessary, Wakeham stated that he is open to amending or renegotiating the agreement to ensure its fairness.
Quebec Premier François Legault has reaffirmed his support for the agreement, emphasizing its mutual benefits for both provinces. Legault assured continued collaboration with Newfoundland and Labrador, expressing commitment to the existing partnership. Hydro-Québec echoed Legault’s stance, affirming confidence in the fairness and benefits of the current agreement and showing support for Wakeham’s victory.
The Churchill Falls MOU is projected to generate over $200 billion for both provinces over the next 50 years. Legault is approaching the final year of his second term as Quebec’s premier, with the province’s next election scheduled for October 5, 2026.
