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Tab D: Portfolio Coordination

Tab D: Portfolio Coordination

Canada Infrastructure Bank Mandate and Value

Issue / question

How is the Canada Infrastructure Bank delivering value for Canadians?

Suggested response

  • Closing Canada's infrastructure gap is not something that any one government can do alone. The Bank is working with all orders of government, private investors and Indigenous partners to make taxpayer dollars go further and deliver the infrastructure that will position Canada for success over the long-term.
  • I am encouraged to see the Bank's growing portfolio of projects. It has now committed $10 billion in capital to advance 48 infrastructure projects across Canada.
  • The Bank is investing in projects across Canada that will deliver economic growth,  address climate change, and advance reconciliation with Canada's Indigenous peoples.
    • This includes investments in renewable power, zero emissions buses, broadband, electric vehicle charging and enabling infrastructure to support housing development.
  • The need for the CIB's model was reaffirmed in the recent legislative review of the Canada Infrastructure Bank Act.

Background

  • The Canada Infrastructure Bank (CIB)was established to work with governments across Canada to attract investment from private and institutional investors, like pension funds, in revenue-generating infrastructure projects that are in the public interest, such as those that support economic growth or transition to net-zero emissions. The CIB plays an important advisory role through building capacity and structuring complex projects.
  • The CIB was created as part of the Investing in Canada Plan in June 2017. As part of the Plan, the CIB is mandated to invest $35 billion over 11 years, with a net fiscal expense of $15 billion to support innovative approaches to infrastructure funding, for instance by offering below market rates or subordinated terms, and to cover the Bank's operating costs.
  • Over time the CIB's role has shifted. In 2020, the CIB launched its three-year Growth Plan that led to $10 billion of investments in strategic initiatives such as zero-emission buses, energy efficiency building retrofits, agricultural irrigation, broadband, and clean energy transmission, renewables and storage. In Budgets 2022 and 2023, the Government provided the Bank with authorities to invest in private sector-led infrastructure projects that accelerate Canada's transition to a low-carbon economy and positioned the CIB as the government's primary financing tool for supporting clean electricity generation, transmission, and storage projects. To support Indigenous participation in major projects, Budget 2023 also  announced the CIB will provide loans to Indigenous communities to support them in purchasing equity stakes in infrastructure projects in which the Bank is also investing.
  • The Government has set a target for the CIB to invest at least $1 billion in total from its existing funding allocation across its five priority sectors for revenue-generating projects that benefit Indigenous Peoples. In response, the CIB established the Indigenous Community Infrastructure Initiative, which provides low-cost and long-term debt for Indigenous community-based projects.
  • As of June 30, 2023:
    • CIB is involved in 48 infrastructure projects (including 42 investments that have reached financial close and 32 in active construction);
    • CIB's approved investments of $10 billion have attracted $8.8 billion in private and institutional capital; and
    • CIB's approved investments are in projects with a total capital cost of $28 billion.
  • The first legislative review of the Canada Infrastructure Bank Act was conducted between June 2022 and June 2023. The review found that the legislation governing the CIB is appropriate and the CIB's core objectives remain sound and relevant.

Canada Infrastructure Bank Projects and Investments

Issue / question

Progress of the Canada Infrastructure Bank's projects and investments.

Suggested response

  • I am encourages to see the Bank's growing portfolio of projects. It has now committed $10 billion in capital to advance 48 infrastructure projects across Canada.
  • The Bank has made significant progress in attracting private and institutional investment in projects. To date, it has attracted $8.6 billion in private and institutional capital to help finance important projects across Canada that in many cases would not have come to be without the Bank's support.
  • The Bank's investments are starting to deliver concrete results. Nearly 70% of its projects are now in construction creating good-paying jobs for Canadians. Several of its projects are also in operation such as:
    • Phase 1 of the REM light rail project which is now serving citizens in  Montréal; and,
    • Zero emission buses in several municipalities, including 20 currently in service in Edmonton.

Background

  • As of June 30, 2023:
    • CIB is investing in 48 infrastructure projects, including 42 that have reached financial close and 32 in active construction; and
    • CIB's $10 billion total investment commitments in projects with a total capital cost of $28 billion have attracted $8.8 billion in private and institutional capital.
  • The CIB has made investment commitments across Canada in its five priority sectors (as of June 30, 2023):
    • Public Transit: 12 projects
    • Clean Power: 7 projects
    • Green Infrastructure: 18 projects
    • Broadband: 8 projects
    • Trade and Transportation: 3 projects
  • Below are some of the investments the CIB has already made by priority sector, along with the CIB's investment commitment for each:
    • Transit
      • Réseau express métropolitain (REM) (Quebec) - $1.28 billion
      • Brampton Zero Emission Buses (Ontario) - $400 million
    • Broadband
      • Manitoba Fibre (Manitoba) - $164 million
      • ATG Arrow Technology Group (Saskatchewan) - $8.1 million
    • Clean Power
      • Darlington Small Modular Reactor (Ontario) - $ 970 million
      • Atlin Hydroelectric Expansion (British Colombia and Yukon Territory) - $80 million
    • Trade and Transportation
      • Alberta Irrigation (Alberta) - $466 million
      • High Frequency Rail (Ontario and Quebec) - $55 million
    • Green Infrastructure
      • DREAM Retrofits (Ontario and Saskatchewan) - $137 million
      • Varennes Carbon Recycling Facility (Quebec) - $277 million
    • Indigenous Infrastructure
      • Netmizaaggamig Nishnaabeg Reserve Extension (Ontario) - $8 million
      • Enoch Cree Nation Arena Road Project (Alberta) - $15 million
  • The CIB's website includes a comprehensive list of CIB projects, initiatives and advisory engagements, with further detail on how the projects are helping Canadians.

Legislative Review of the Canada Infrastructure Bank Act

Issue / question

What is the status of the legislative review of the Canada Infrastructure Bank Act?

Suggested response

  • The legislative review of the Canada Infrastructure Bank Act was an opportunity to reflect on and examine the experience of the Canada Infrastructure Bank (CIB) to date. My predecessor tabled his final report in Parliament in June 2023.
  • The process was informed by significant stakeholder engagement. In total, representatives of over 80 stakeholder organizations were engaged and over 40 written submissions were received.
  • The Review found that the legislation governing the CIB is appropriate and the CIB's core objectives remain sound and relevant. It also found that the Bank has matured and grown as an institution, and has begun to serve as an important tool that governments can use to foster partnerships to support infrastructure projects across Canada.
  • The review also highlighted some areas for improvement. In particular, it highlighted the need to provide greater clarity on the CIB's role and model, and for the CIB to increase its reach with smaller municipalities and Indigenous communities. Work is underway to respond to these findings.

Background

  • The Canada Infrastructure Bank Act (CIB Act), the enabling legislation for the Canada Infrastructure Bank (CIB), requires the Minister to undertake a review of the provisions and operations of the CIB Act every five years beginning on the day on which it came into force. The review was initiated by the then-designated Minister for the period covering June 22, 2017, to June 22, 2022.
  • The CIB Act requires that a report on the findings of the review be tabled before Parliament one year from the day the review was undertaken, and this report must be reviewed subsequently by the relevant parliamentary committee. The report was tabled in Parliament in June 2023.
  • The review assessed: whether the premises and context that underpinned the creation of the Bank were still valid and pertinent; whether the CIB's mandate and authorities to support its operations remained relevant; and whether any changes or clarifications were warranted to position the CIB going forward.
  • The findings of the review re-affirmed the importance of the CIB in delivering on Government priorities and that its mandate remains relevant. It found that the CIB has grown and matured as an arms-length Crown corporation making independent investment decisions, acknowledging that the CIB required time to first establish itself as an institution, to develop appropriate investment tools and offerings, and to work with partners to identify the right projects that would benefit from the CIB's model. Following an initial three year-period of slow portfolio growth, the CIB's pace of investments has accelerated from 2020 to the present. The report further mentioned that the CIB is well-positioned for continued and sustained success. The review found that no amendments to its enabling legislation were recommended.
  • Additionally, the review identified several key areas where the CIB can make improvements going forward including:
    • Providing greater clarity on the CIB's role and model;
    • Advancing the use of alternative financing; and
    • Enhancing CIB governance and results measurement.
  • A Statement of Priorities and Accountabilities was issued to the CIB in September 2023 which provided CIB guidance in these areas. The CIB has incorporated this guidance into its forward plans.
  • It is important to note that, in May 2022, the House of Commons Standing Committee on Transportation, Infrastructure and Communities (TRAN) examined the CIB's progress and issued a report with a sole recommendation: that the Canada Infrastructure Bank be abolished. In its report, the committee described how the CIB had failed to meet expectations related to efficiency, cost, transparency, community needs, and private sector involvement.

Gordie Howe International Bridge Project Status

Issue / question

What is the status of the Gordie Howe International Bridge Project?

Suggested response

  • Construction of the Gordie Howe International Bridge Project is progressing well. The bridge towers on both sides of the border will reach their full height in the coming days marking a major milestone. Work on the bridge deck and ports of entries is also well advanced.
  • The Windsor-Detroit Bridge Authority, the Crown corporation overseeing delivery of the Project, is working with the private partner to assess the impacts of the pandemic on the project, including impacts on the schedule. We will be a better position this fall to provide an update on when the bridge will be completed.
  • Canada is working hand-in-hand with the State of Michigan and other partners on both sides of the border to deliver a new international crossing that will support long term jobs and binational trade that will drive economic growth for years to come.

Background

  • The Gordie Howe International Bridge Project will provide modern facilities and a direct highway-to-highway connection between Highway 401 in Windsor, Ontario and Interstate 75 in Detroit, Michigan, facilitating the flow of people and goods at the busiest Canada - U.S. border crossing.
  • The Bridge will be jointly owned by Canada and Michigan, and delivered by Windsor-Detroit Bridge Authority (WDBA), a non-agent Crown corporation, through a $5.7 billion fixed-priced, public-private partnership with Bridging North America (BNA). Canada is funding the full amount with costs to be recouped from toll revenue.
  • The project is in its fifth year of construction (2018-2024) and work has continued throughout the pandemic on all project components. Once completed the Bridge towers will stand at 220 metres/722 feet. Construction of the Ports of Entry buildings on both sides of the border are well advanced and work is also progressing on the Interstate 75 interchange in Michigan with ramp construction continuing and construction of three bridges over the I-75. The bridge tower on the US side of the border has reached its full height and the Canadian tower is expected to reach its full height in early October.
  • The contractual date for the bridge opening remains November 2024, but potential delays to schedule have been reported in the media by the Private Partner. Delays are not uncommon for large infrastructure projects like this, and the pandemic has been an exceptional challenge. WDBA is working with its Private Partner regarding any pandemic impacts and schedule-recovery measures but it is premature to predict potential impacts to schedule with any certainty at this time. The Private Partner  is responsible to deliver the project as per its contractual requirements and implementing solutions to mitigate delays.
  • The Project is significantly benefiting local communities through its comprehensive Community Benefits Plan, which includes a Workforce Development and Participation Strategy, compromising of employment, training, and educational opportunities, along with a Neighbourhood Infrastructure Strategy that includes aesthetic and functional improvements to local communities in the Windsor-Detroit area. Since 2018, the project has employed 10,000 local workers and supported over 260 local businesses. The Community Benefits plan also includes opportunities to celebrate the region's history, including the history of the Black community.

Samuel De Champlain Bridge Corridor Project Dissuasive Barriers/Suicide Prevention

Issue / question

Are there suicide prevention measures on the Samuel De Champlain Bridge?

Suggested response

  • Tragically, there have been suicides and suicide attempts on the Samuel De Champlain Bridge in Montréal. First and foremost, I want to offer my deepest condolences to the families affected. These events reinforce the importance of addressing our current mental health crises.
  • The safety of all bridge users remains our top priority. The systems we have in place, including dissuasive barriers and active monitoring, follow established best practices for bridge safety.
  • That said, we continue to work with the bridge operator and the Sûreté du Québec to assess on an ongoing basis whether additional safety measures are appropriate. My officials also continue to engage with bridge operators around the world to identify best practices and prevention measures that could be implemented.

Background

  • An article in La Presse on December 3, 2021, reports that there were four suicides and two suicide attempts on the Samuel De Champlain Bridge in 2021, compared to two attempts in 2020, and one suicide in the second half of 2019.
  • In January and April 2023, Infrastructure Canada received two coroners reports with the same recommendation; to ensure that the dissuasive barrier along the multi-use path on the Samuel De Champlain Bridge is impossible to climb and overcome.
  • The Samuel De Champlain Bridge Corridor, includes dissuasive barriers along the multi-use path that crosses the bridge, concrete barriers with an additional metal railing, compliant with the Ministère des Transports du Québec standards, along the roadways, a 24/7 real-time surveillance system, as well as an emergency interphone system connected with the Sûreté du Québec.
  • The Department is monitoring the situation closely and collaborating with the Private Partner, operating the bridge, and the Sûreté du Québec to determine whether additional measures are required.
  • The Department is also communicating with other bridge operators to research best practices from around the world.

Samuel De Champlain Bridge Corridor Project: Noise Complaints from Residents

Issue / question

Complaints about the noise coming from the highway from nearby residents.

Suggested response

  • The quality of life of residents living close to the new Montréal bridge corridor is a priority as we work to finish all remaining construction activities and address outstanding issues.
  • The Government of Canada and the private partner are committed to improving the situation around noise, in consultation with the City of Montréal and local residents.
  • The parties are working to identify required changes in order to adapt sound barriers and address the noise issue as part of the completion of construction.

Background

  • The Environmental Assessment carried out by Canada in 2021 identified noise sensitive areas (residential areas or schools) along the Samuel De Champlain Bridge Corridor in Montréal.
  • Specific noise levels not to be exceeded for every noise sensitive area are specified in the contract signed with the private partner, Signature on the St. Lawrence Group, who is responsible for the design, construction, and operation of the noise barriers.
  • The noise barriers designed and built by the private partner have to comply with the project criteria for the duration of the 30-year Operation, Maintenance, and Rehabilitation period.
  • Noise measurement taken along the corridor by the department and the private partner following complaints from citizens indicate that project noise criteria are exceeded in some areas, notably Verdun. As such, the private partner is reviewing the design of the noise barriers to determine whether changes are required.
  • As part of its commitment to transparency and information sharing with its stakeholders on the project, Infrastructure Canada and the private partner held a public information session on October 13, 2021 in Montréal's Verdun Borough to communicate the progress made on the issue. During this information session, the private partner acknowledged that the noise measurements in some areas exceeded project criteria and that it was working on addressing the issue in a timely manner.
  • The bridge has been open to traffic for four years, however there is remaining construction work to complete the project, as well as finalizing the decommissioning of the adjacent old Champlain Bridge.

Samuel De Champlain Bridge Corridor Project Status and Integration of the Réseau express métropolitain

Issue / question

What is the status of the Samuel De Champlain Bridge Corridor Project and the integration of the Réseau express métropolitain?

Suggested response

  • The Samuel De Champlain Bridge has been operational since June 2019, serving residents of Montreal and the South Shore.
  • The first segment of the Réseau Express Métropolitain (REM) light rail corridor crossing the Samuel De Champlain Bridge and connecting the South Shore to Downtown Montreal began revenue service on July 31, 2023.
  • Work is progressing to complete the outstanding components of the project that were delayed as a result of the pandemic.

If asked about the temporary reserved bus lanes on the shoulders of the Samuel De Champlain Bridge:

  • In coordination with CDPQ Infra and l'Agence régionale de transport métropolitain (ARTM), a temporary reserved bus lane was set up on the Bridge shoulders in both directions during the construction of the REM. The permanent configuration of the Bridge is expected to be implemented in spring 2024 consisting of three regular lanes with shoulders in both directions.

If asked about the old Champlain Bridge:

  • The deconstruction of the old Champlain Bridge is progressing as planned using innovative techniques that aim to protect the environment and allow for the reuse of bridge components.
  • The deconstruction is on pace to be completed in 2024 and will be followed by the restoration of the shoreline.

Background

  • The Samuel De Champlain Bridge Corridor includes the 3.4 km Samuel De Champlain Bridge crossing the St. Lawrence, 500 m Île-des-Sœurs Bridge, reconstruction and widening of the federal portion of Highway 15 over 3 km, and realignment of over 1 km of Highway 10.
  • The project is being delivered as part of a public-private partnership (P3) between the Government of Canada and Signature on the Saint-Laurent Group (SSLG). The P3 includes the design, construction, financing, operation, maintenance, and rehabilitation of the Project over a 34-year period (2015-2049) at a cost of $4.212 billion.
  • The Project Agreement is managed through an integrated project team with Infrastructure Canada as the project lead, Public Works and Procurement Canada as the contracting lead, and Justice Canada providing legal support.
  • The Samuel De Champlain Bridge includes six lanes for vehicle traffic, a multi-purpose path supporting active transportation, and a central corridor dedicated exclusively to public transit. The segment of the REM between the South Shore to downtown Montréal that crosses the Samuel De Champlain Bridge began revenue service on July 31, 2023.
  • Following the decision  by the Government of Quebec to build the REM in the Bridge's dedicated transit corridor, the Government of Canada asked its Private Partner to enable the temporary operation of buses on the Bridge shoulders during the construction of the REM. As such, the Bridge lane marking configuration was temporarily modified (i.e., outside shoulders were widened).
  • INFC and ARTM negotiated and formalized the appropriate agreements to allow buses to run on the Bridge shoulders as temporary reserved bus lanes with the understanding that the permanent lane reconfiguration of the bridge (i.e., three lanes and two shoulders) would be implemented following the commissioning of the REM as soon as weather permits. Works are expected to start in spring 2024 for a period of 3 months.
  • The project to deconstruct the original Champlain Bridge is managed by the Jacques Cartier and Champlain Bridges Incorporated (JCCBI). The overall estimated cost of the deconstruction project including the deconstruction work, environmental protection measures, material reuse programs, research and development, and the end-of-project shoreline redevelopment component is approximately $400 million. This amount includes $225.7 million for the design-deconstruct contract signed by JCCBI and Nouvel Horizon St-Laurent G.P. Deconstruction work began in August 2020. Project completion, including the restoration of lands left vacant, is anticipated in 2025.

Waterfront Toronto

Issue / question

Since 2000, the federal government has been partnering with the Government of Ontario and City of Toronto to revitalize Toronto's waterfront.

Suggested response

  • The Government of Canada has contributed nearly $1 billion to support the revitalization of Toronto's waterfront. Federal support is helping to build new waterfront neighborhoods that will have a wide variety of housing types targeting all income levels, and new public spaces that are people focused and family friendly.
  • Federal investment in the Port Lands Flood Protection Project, one of the largest civil works projects underway in North America, is creating flood protected lands and green space for the community and unlocking more land for future development, including much needed housing.
  • The Governments of Canada, Ontario and Toronto are working together with Waterfront Toronto to develop the infrastructure that communities need now and in the future.

Background

  • In 1999, the City of Toronto, Province of Ontario and Government of Canada jointly committed $1.5 billion ($500 million each) in seed funding for the Toronto Waterfront Revitalization Initiative, a long-term coordinated plan to renew and revitalize publicly-owned lands along Toronto's central waterfront in support of a planned Olympic bid.
  • Waterfront Toronto was created in 2001 to lead and implement the Toronto Waterfront Revitalization Initiative, whose geographical boundaries amount to the transformation of 800 hectares of underutilized brownfield lands along Toronto's central waterfront. Waterfront Toronto receives government funding on a per-project basis.
  • The organization was jointly established and continues to be jointly governed by the three orders of government, who have directed two large shared investments to Waterfront Toronto in support of its mandate, including the aforementioned seed funding and $1.25 billion ($416.6 million each) for the ongoing Port Lands Flood Protection Project (PLFP). This project will flood-protect 880 acres of waterfront land and unlock 240 hectares for long-term development, including the land on the newly-created Villiers Island. Federal investments made through the PLFP have enabled the creation of developable lands on Villiers Island, including potentially 4,850 in new housing units.
  • [Redacted].
  • Separate from federal funding, Waterfront Toronto is undertaking the Quayside Development Opportunity, a project that aims to develop a 12‑acre site into an inclusive, next-generation sustainable neighbourhood. In December 2022, Waterfront Toronto's Board approved an agreement with the development partner, Quayside Impact Limited Partnership (QILP).
  • Waterfront Toronto's initial 25-year mandate is set to expire in May 2028. Government partners are discussing what a mandate extension would entail and what a renewed tri-governmental partnership could look like.

Bonaventure Expressway Redevelopment

Issue / question

What is the status of the redevelopment of the Bonaventure Expressway?

Suggested response

  • The waterfront portion of the Bonaventure Expressway has reached the end of its useful life, and must be reconstructed to ensure continued safe and efficient flow of traffic.
  • Budget 2023 provided $47.8 million over nine years, and $225.5 million in remaining amortization for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard. The redevelopment includes a linear park and a multi-use path along the St. Lawrence River that will provide citizens with previously unavailable waterfront access.
  • Jacques Cartier and Champlain Bridges Incorporated and Infrastructure Canada continue to collaborate with the City of Montréal and local stakeholders to work out the final details and ensure timely completion of the project.

Background

  • The federal section of the Bonaventure Expressway is operated and maintained by The Jacques Cartier and Champlain Bridges Incorporated (JCCBI), a Crown corporation in the Minister of Intergovernmental Affairs, Infrastructure and Communities portfolio.
  • The total length of the federal section of the Bonaventure Expressway and associated infrastructure is 4.57 km. It consists of distinct sections comprised of a waterfront expressway, an elevated expressway and the Clément bridge that connects the infrastructure to the Samuel De Champlain Bridge Corridor.
  • Built in 1967, the waterfront portion of the Bonaventure Expressway has reached the end of its useful life and must be reconstructed to ensure continued safe and efficient flow of traffic.
  • Over the last few years, JCCBI has been working closely with the City of Montréal to ensure alignment on the vision for the project and develop a plan to convert the waterfront portion of the Bonaventure Expressway into an urban boulevard. Features of the plan include the implementation of a linear park and a multi-use path along the St. Lawrence River in order to provide residents with access to the shoreline that was previously unavailable.
  • As instructed through Budget 2021, JCCBI initiated discussions with the City of Montréal to explore the merits of divestiture for the federal portion of the Expressway after its redevelopment by JCCBI.
  • Budget 2023 provided funding of $47.8 million over nine years, starting in 2023‑2024, and $225.5 million in remaining amortization to JCCBI for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
  • The federal section of the Bonaventure Expressway is situated on highly contaminated  lands. Its reconfiguration will provide access to sites that were not accessible due to the presence of infrastructure, which could allow JCCBI to treat contaminants at the source using the Federal Contaminated Sites Action Plan funding that has been set aside to undertake these activities.
  • INFC and JCCBI will continue to work with the City of Montréal throughout the implementation of the initiative to ensure ongoing alignment on the vision for the reconfiguration of the Expressway, and to explore the merits of divestiture in future years.

Public-Private Partnerships

Issue / question

How can the private sector help advance Canada's infrastructure policy objectives?

Suggested response

  • Canada is recognized globally as a leader in the development and execution of Public Private Partnerships or P3 models for the delivery of public infrastructure.
  • Successful P3s have shown that private investors bring innovation in the planning and design of a project and discipline in budgeting, scheduling and delivery of an asset. The P3 model can help authorities manage projects by transferring risks relating to infrastructure usage or revenue to the private sector.
  • P3s will continue to be one option in the Government's toolkit, along with other collaborative alternative finance and delivery models. Jurisdictions will need to select models that best suit their needs and capabilities.

Background

  • There are a variety of different P3 models that exist. Under a full lifecycle P3 model, the private sector is engaged to design, build, finance, operate and maintain an infrastructure project based on well-defined performance criteria over a fixed term. The public sector retains ownership of the asset.
  • P3s are not suitable for every project. They are one of many tools in the public sector's tool box for delivering and managing major infrastructure projects. P3s work best for large, complex projects that appropriately transfer project risks to the private sector in a manner that delivers positive Value for Money, typically in the form of cost savings.
  • The P3 model was an important building block in the formation of the Canada Infrastructure Bank.
  • The Bank is taking elements of the P3 model further by using revenue and user charges to fund the asset, in whole or in part, and transfer more revenue, usage and ownership risks to the private sector. This allows for equity to be shared with the private sector for a risk-adjusted rate of return.
  • Due to the pandemic, supply chain constraints and inflation of key material prices, contractors are shying away from the fixed price, date certain bidding models for large complex projects and favouring collaborative or progressive models in which project development is done in a partnership between public and private sector before entering into a fixed or target price contract.
  • The collaborative or progressive models suggest a better understanding of project risks and allocation between partners however they are as yet unproven in the market. Ontario is currently undertaking several projects using this model including the Scarborough Subway Extension. Transport Canada is using a similar model to procure a co-development partner for the High Frequency Rail project.

High Frequency Rail

Issue / question

Infrastructure Canada's and Canada Infrastructure Bank's role in the Québec City to Toronto High Frequency Rail Project.

Suggested response

  • Infrastructure Canada is supporting the procurement process for the High Frequency Rail project led by the Minister of Transport, the Honourable Pablo Rodriguez.
  • In particular, Infrastructure Canada is leading the development of a contractual agreement with a private partner who will work collaboratively with the Government of Canada to define and design the project.
  • The Canada Infrastructure Bank is also supporting the project. They are exploring alternative financing and partnership models with private investors that can reduce project-related costs, better manage project-related risks, and promote innovation.

Background

  • High Frequency Rail (HFR) is a transformative rail and infrastructure project that will connect transit hubs, support climate commitments and leverage private capital to invest in public infrastructure.
  • The HFR project will create dedicated tracks in the Toronto-Québec City corridor to provide Canadians with faster, frequent and reliable intercity train service. This will also lead to improved service for the whole corridor.
  • Infrastructure Canada is supporting the procurement process led by the Minister of Transport, the Honourable Pablo Rodriguez. Several departments and agencies are supporting this effort, including VIA-HFR, the newly created subsidiary of VIA Rail, and the Canada Infrastructure Bank.
  • By investing in urban and regional transit systems, the Government will ensure connectivity with local networks and an intercity transportation system that is sustainable for the long-term.
  • The Canada Infrastructure Bank is also supporting the project and exploring alternative financing models to partner with private investors and help optimize and structure the project in a way that reduces risk and promotes innovation.
  • With a once in a generation infrastructure project of this scale and complexity, it is important to get the process right and demonstrate the benefits of involving the private sector early in the planning stage.
  • Budget 2022 included $396.8 million over two years in funding to Transport Canada and Infrastructure Canada for planning and design in support of the project.
  • On February 17, 2023, the Government of Canada officially launched the procurement process to select a private developer partner to work in collaboration with VIA HFR, to design and develop the HFR project with the release of the Request for Qualifications.
  • On July 20, 2023, the Government of Canada announced the three bidding teams that had qualified and would be invited to respond to the Request for Proposals for the HFR project. The three teams are Cadence, Intercity Rail Developers and QCONNEXION Rail Partners.
  • The Minister of Transport will be leading on any future announcements regarding the HFR project.
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