Remarks for Catherine McKenna, Minister of Infrastructure and Communities to the Standing Committee on Transport, Infrastructure and Communities

Ottawa, Ontario, virtual meeting
February 25, 2021

Acknowledgements

I would like to acknowledge that I am in Ottawa, on the traditional unceded territory of the Algonquin Anishnaabeg People.

Introduction

Good afternoon. Thank you very much, Mr. Chair.

Thank you for inviting me to your committee to discuss the importance of investing in infrastructure for Canadians and the role the Canada Infrastructure Bank plays in our infrastructure plan. And thank you to the committee for undertaking this important study. 

Firstly, I'd like to say that our government is committed to making critical infrastructure investments across the country that will help to build back better -- creating good jobs while helping to reduce impacts on the environment.

This is especially important today as Canadians face a health and economic crisis brought on by the COVID-19 Pandemic. Canadians expect our government to make the investments necessary to help repair our economy and to build the future we want for our children and grandchildren.

There is no question that the Canada Infrastructure Bank plays an important role in our plan. The Bank has already committed to infrastructure projects that contribute to Canada's economic growth, building inclusive and resilient communities and that help meet our climate targets. 

The CIB has been working hard to mobilize opportunities through private sector investments into revenue-generating projects, resulting in more jobs for Canadians and more projects moving forward.

It's not just about building though, it's about building stronger, more sustainable infrastructure that meets our climate targets, creates good union jobs and builds projects that our kids can be proud of.

The pandemic of the last year has challenged Canadians in countless ways. On top of the impact of the illness, death, and public health measures to stop the spread of infection, we're now facing the challenge of building our economy back.

The work we do, and the decisions we make, in the coming months and years will define our country's path for decades to come.

I truly believe that Canadians will look back on this time of the pandemic – and Canadians' collective response to build a cleaner, more sustainable and liveable country in its aftermath – as one those turning points in the history of our country.

The way we look back on the building of the transcontinental railroad, or the TransCanada Highway, or the Saint Laurence Seaway as moments of great national ambition that pay dividends for generations.

We must accept the challenge to get the projects built that we need to make our communities cleaner and more livable while supporting jobs and fueling our economic resurgence. We're building infrastructure that aligns with our government's priorities—projects that will deliver more high-speed broadband, investments in renewables and transmission of clean energy, green retrofits for commercial buildings, agricultural investments as well as investments in zero emission buses and charging infrastructure.

Canada is home to a strong and stable financial sector, combined with large banks, major insurance companies and pension funds that invest alongside the government to build the infrastructure that Canada needs for a cleaner and more prosperous future. 

But to be successful, we must be innovative in our approach.

This is why the government is undertaking Canada's first National Infrastructure Assessment. By identifying where gaps exist and what needs to be prioritized, we will enable provinces, territories, municipalities and Indigenous communities to identify projects of key importance.

While the UK was a pioneer in pursing this kind of assessment, Canada is demonstrating leadership that others are following. In fact, we now see the UK looking to set up its own infrastructure bank, and there is growing momentum for new models for investment in the US.

Canada Infrastructure Bank

Let me take just a couple of minutes to talk about where the CIB is today. It has entered a new phase of its development under a strong and capable leadership team.

The team is hard at work, engaging with governments across the country, provinces, territories, and local governments to invest in the projects now and in the future.

The CIB is committed to developing and executing $35 billion in investments to get maximum long-term benefits for Canadians. The CIB also provides expert advice to other governments to help them find new ways to address their infrastructure needs.

To strategically take on risk and make projects commercially viable and to crowd-in and mobilize private and institutional capital, ensuring more projects are built, the CIB has been provided a variety of financial tools including loans and equity, to deliver federal support.

As an arm's-length Crown corporation, the Government sets the policy priorities and the CIB's Board of Directors is responsible for the organization's management and investment decisions.

To ensure the organization's priorities remain aligned with the government's, last month I updated the CIB's Statement of Priorities and Accountabilities. It now includes a target for the CIB to invest at least $1 billion in total across its five priority areas in revenue-generating projects that benefit Indigenous Peoples.

Additionally, last fall our government joined the CIB in announcing its Growth Plan that sets in motion a clear plan for the crucial next three years. 

The CIB's three-year, $10 billion Growth Plan will be a key driver of our plan to build back batter through its five major initiatives; clean power; broadband; energy efficient buildings; agricultural irrigation; and zero-emission buses.

The CIB has taken immediate action to implement its Growth Plan – first with a $407 million investment towards the largest agricultural irrigation project in Alberta.

Recently, it announced an engagement with what is anticipated to be the largest battery storage facility in Canada. This will see new investment between an innovative Canadian company, NRStor, and an entrepreneurial First Nations community, the Six Nations of the Grand River Development Corporation.

These are two of the thirteen projects in which the CIB is participating – in all regions of the country, in different sectors, and at early stages of project development through to construction. And the number of projects and investments will continue to grow.

The CIB now has priority sectors, an investment plan, and strong leadership to play a significant role in getting more and better projects built for Canadians all across the country.

With Chairperson Tamara Vrooman and CEO Ehren Cory at the helm, the CIB's $10 billion Growth Plan will create thousands of jobs while growing our economy and reducing greenhouse gas emissions.

I am confident the CIB's investments will help to drive Canada's economic recovery and build the infrastructure we need, in all communities, for Canada's long-term success.

Thank you for your attention. I look forward to answering your questions.