After a recent change in leadership in Newfoundland and Labrador, there is uncertainty surrounding the province’s significant hydroelectric agreement with Quebec. The new agreement, known as the Churchill Falls MOU, aims to replace the long-standing 1969 contract, which has been criticized for being unfair to Newfoundland and Labrador. Signed in December, the MOU includes plans for various hydroelectric developments, including the Gull Island project expected to be operational by 2035. Newfoundland and Labrador Hydro and Hydro-Québec have also proposed constructing a second plant at Churchill Falls and increasing production at the existing Churchill Falls complex.
Following the victory of Tony Wakeham and the Progressive Conservative party, ending a decade-long Liberal rule in the province, doubts have been cast on the hydroelectric deal. Wakeham, the premier-designate, has vowed not to proceed with the Churchill River agreement without voter approval through a referendum. In his victory speech, Wakeham emphasized the development of Churchill Falls and Gull Island, electrification of Labrador, and resource development for community benefits while stressing the end of a passive government approach in resource management.
Wakeham has committed to conducting a thorough independent review of the agreement and sharing its findings with the public. He stated that if necessary, the deal would be amended or renegotiated to ensure fairness. Quebec Premier François Legault has expressed support for the agreement, emphasizing its benefits for both Newfoundland and Labrador and Quebec. Hydro-Québec echoed this sentiment, affirming their commitment to the current agreement’s fairness and expressing readiness to continue negotiations with Newfoundland and Labrador Hydro.
The MOU is projected to bring in over $200 billion for both provinces over the next five decades. Legault is in the final year of his second term as Quebec’s premier, with the province’s next election scheduled for October 5, 2026.
