The Canada Infrastructure Bank was established in June 2017 as part of the federal government’s 2016 Fall Economic Statement. With $35 million to invest in “new, transformative, revenue-generating infrastructure projects that are in the public interest” it is expected to begin deploying capital later this year.
A Crown corporation operating at arm’s length from government, the Bank will be located in Toronto, but set up to be able to finance infrastructure in all parts of Canada. Currently the Bank is “in start-up mode,” establishing the necessary functions with the appropriate staff. Chair Janice Fukakusa was appointed in July 2017 and its Board of Directors was appointed in November 2017. Bruno Guilmette was appointed as the interim Chief Investment Officer in December 2017.
A Bank representative replied by email to some questions:
Could you clarify what some of the general statements mean, in layman’s terms?
• the bank “uses federal support to attract private sector and institutional investment”
• is that through some leveraging multiplier in a public-private arrangement?
Canada Infrastructure Bank opens the door for private investors to a wider array of Canadian infrastructure investment opportunities than they have had before. Across the country, new infrastructure is needed to facilitate transportation, economic and social development. By attracting private-sector and institutional capital to invest in revenue-generating projects alongside federal funding, we aim to help build new infrastructure that might not otherwise get built, increasing assets and services for Canadians. The bank has the ability to invest in projects using equity, debt and potentially loan guarantees, depending on what makes the most sense for a specific project.
Similarly, what is meant by “a new tool that provincial, territorial, municipal and Indigenous government partners can use to access innovative financing”?
For municipal, provincial, territorial and Indigenous governments, and their agencies, we offer another option for building new infrastructure projects. It’s important to note that Canada Infrastructure Bank does not replace traditional sources of funding for infrastructure – we are a new option.
How will the bank evaluate “new, transformative, revenue-generating infrastructure projects that are in the public interest”?
Infrastructure projects are typically large, complex and long-term in nature. Our investments will align with the Government of Canada’s high-level priorities: public transit, green infrastructure, and trade and transportation. Here are some of the ways the bank will evaluate:
Projects must be the public interest, be revenue generating and attract (or be able to attract) private investment.
Canada Infrastructure Bank will develop additional technical and investment criteria. Projects that meet these criteria will then be considered on a case-by-case basis. After conducting due diligence, we will determine whether a specific investment is suitable.