Following a change of government in Newfoundland and Labrador, there is an air of uncertainty surrounding that province’s huge but tentative hydroelectric deal with Quebec.
The tentative agreement, known as the Churchill Falls MoU, would replace the 1969 contract, widely considered unfair to Newfoundland and Labrador.
The MOU, whichIt was signed last December. describes several new hydroelectric developments, one of them being the long-discussed Gull Island project, scheduled to come online in 2035.
Newfoundland and Labrador Hydro and Hydro-Québec also planned to build a second plant in Churchill Falls while also increasing production at the existing Churchill Falls complex.
On Tuesday night, Tony Wakeham and the Progressive Conservative Party secured a majority government, ending 10 years of Liberal rule in the province.
Now they cast doubt on the hydroelectric agreement.
The prime minister-designate has vowed not to proceed with any Churchill River deal unless voters give it the green light in a referendum.
“We will develop Churchill Falls. We will develop Gull Island. We will electrify Labrador. We will develop our resources, with our workers, for the benefit of our communities,” Wakeham said in his victory speech.
“But the era of timid government is over. When it comes to our province’s resources, we will be the ones making the decisions.”
Wakeham said he would demand a “true independent review” of the deal and share his findings with the public.
“If this agreement needs to be modified or renegotiated, we will do so,” Wakeham said.
There was applause, hugs and almost too many politicians to count Thursday in St. John, when the premiers of Quebec and Newfoundland and Labrador announced a memorandum of understanding to end the famous Churchill Falls agreement 17 years earlier. A new deal, if approved, would flow tens of billions of dollars into National League coffers for decades to come. CBC’s Terry Roberts explains.
Legault congratulates Wakeham and says the agreement is good
Quebec Premier François Legault reiterated his support for the deal on Wednesday morning.
In his congratulatory message for X to the new prime minister, Legault said the agreement is “beneficial to both Newfoundland and Labrador and Quebec.”
“Rest assured that we are fully committed to continuing our collaboration with Newfoundland and Labrador,” Legault wrote Wednesday morning.
Hydro-Québec, in a statement to Radio-Canada, echoed Legault’s sentiment.
“We remain confident that the current agreement is fair and beneficial for both parties,” Hydro-Québec wrote, also congratulating Wakeham on its victory.
“We have made significant progress in recent months towards reaching a detailed agreement and are committed to continuing negotiations with our partner [Newfound and Labrador Hydro.]”
The Memorandum of Understanding is Both provinces are expected to get more than $200 billion over the next 50 years.
Legault is entering the final year of his second term as Quebec premier. The province’s next elections are scheduled for October 5, 2026.
