After a recent change in leadership in Newfoundland and Labrador, uncertainties loom over the province’s significant hydroelectric agreement with Quebec. The tentative deal, referred to as the Churchill Falls MOU, aims to replace the longstanding 1969 contract, which has been widely criticized for favoring Quebec over Newfoundland and Labrador.
The MOU, which was inked last December, introduces various new hydroelectric projects, including the highly anticipated Gull Island project set for completion by 2035. Newfoundland and Labrador Hydro, in collaboration with Hydro-Québec, also intends to construct a second plant at Churchill Falls while expanding production at the existing Churchill Falls complex.
With the Progressive Conservative party, led by Tony Wakeham, securing a majority government and ending the Liberal rule that lasted for a decade in the province, uncertainties surround the fate of the hydroelectric deal. Wakeham, the premier-designate, has pledged not to finalize any agreements concerning the Churchill River without first obtaining approval from voters in a referendum.
In his victory speech, Wakeham emphasized a commitment to developing Churchill Falls and Gull Island, electrifying Labrador, and utilizing local resources for the benefit of communities. He emphasized a shift away from a passive government approach, stating that they would take charge regarding the province’s resources.
Wakeham also expressed intentions to demand an impartial review of the agreement and promised to share the findings with the public. He stated that if necessary, they would consider amending or renegotiating the deal to ensure it aligns with the province’s best interests.
Quebec Premier François Legault has reiterated his support for the agreement, emphasizing its mutual benefits for both Newfoundland and Labrador and Quebec. Hydro-Québec also echoed this sentiment, affirming their commitment to the current agreement as fair and advantageous for both parties.
The MOU is projected to generate over $200 billion for both provinces over the next 50 years. Legault is currently in the final year of his second term as Quebec’s premier, with the province’s next election scheduled for October 5, 2026.