Tab D: Portfolio Coordination and Major Projects

• Previous
• Table of Contents
• Next

35. Canada Infrastructure Bank Mandate and Legislative Review
36. Canada Infrastructure Bank Projects
37. Canada Infrastructure Bank Impact on Fiscal Framework
38. Gordie Howe International Bridge Project Status
39. Samuel De Champlain Bridge Corridor Project Status and Integration of the Réseau express métropolitain
40. Waterfront Toronto
41. Bonaventure Expressway Redevelopment
42. Public-Private Partnerships
43. P3 Canada Fund
44. High Frequency Rail

Canada Infrastructure Bank Mandate and Legislative Review

Issue / question

How is the Canada Infrastructure Bank delivering value for Canadians?

Suggested response

• Addressing the infrastructure gap in Canada requires significant investments from all orders of government. The Canada Infrastructure Bank (CIB) is serving as an additional federal tool that can reduce the burden on taxpayers, by leveraging private sector investment to develop infrastructure that is in the public interest and close the existing infrastructure gap.
• The CIB can take on risks the private sector alone would not be willing to bear. By attracting private and institutional capital into projects, they can spur innovation and enhance due diligence while reducing the cost to taxpayers.
• This fundamental premise underlying the creation of the CIB was tested and reaffirmed through the legislative review, which concluded last June. The review was informed by feedback from over 80 stakeholders. 
• As of September 30, 2023, the Bank had made investment commitments totalling $10.1 billion and attracted $9.9 billion in capital towards 51 projects, 36 of which are in active construction.

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 expanded. 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.
• Consistent with priorities outlined in the September 2023 Statement of Priorities and Accountabilities, the 2023 Fall Economic Statement (FES) indicated that the CIB is exploring further ways to support the infrastructure required to build more homes, and that further details would be announced by Budget 2024.
• The 2023 FES also announced proposed amendments to the Income Tax Act that will ensure that CIB concessionary loans with reasonable repayment terms would not constitute federal government assistance, and as such, would not reduce the Investment Tax Credit to which the borrower may be eligible.
• 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. To support Indigenous participation in major projects, Budget 2023 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.
• As of September 30, 2023:
  • CIB is investing in 51 infrastructure projects (including 45 investments that have reached financial close and 36 in active construction);
  • CIB's approved investments of $10.1 billion have attracted $9.9 billion in private and institutional capital; and
  • CIB's approved investments are in projects with a total capital cost of $28.9 billion.
• The Canada Infrastructure Bank Act (CIB Act), the enabling legislation for the CIB, requires the Minister to undertake a review of the provisions and operations of the CIB Act every five years. A report of findings on the first legislative review of the CIB Act was submitted to 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 arm's-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.
• The Statement of Priorities and Accountabilities issued in September 2023 provided guidance in these areas, which the CIB has incorporated into its forward plans.

Canada Infrastructure Bank Projects

Issue / question

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

Suggested response

• I am encouraged to see the Canada Infrastructure Bank's (CIB) growing portfolio of projects. It has now committed $10.1 billion in capital to advance 51 infrastructure projects across Canada.
• The Bank has made significant progress in attracting private and institutional investment in projects. To date, it has attracted $9.9 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. Just over 70% of its projects are now in construction, creating good-paying jobs for Canadians, for instance at the Oneida Energy Storage site where 50 of the 140 battery pack foundations have been poured and 60 workers are on site daily. Several of its projects are also in operation such as Phase 1 of the REM light rail project which is now providing daily ridership to 30,000 citizens in Montréal.

If pressed on Avenue Living and Real Estate Investment Trusts:

• To date, the CIB has made a $130 million investment with Avenue Living that will upgrade 240 residential buildings and help lower greenhouse gas emissions by approximately 50%.
• Avenue Living has not used any funding from the CIB as of November 2023, and has confirmed to the CIB that no project notices have been provided to evict any tenants in relation to the CIB funded project. Senior management from Avenue Living indicated to the CIB their willingness to engage in further discussion about rental rates and retrofits directly with tenants.
• [redacted]

If pressed on Fairmont Royal York:

• The CIB is investing $46.5 million toward a deep energy retrofit at the Fairmont Royal York Hotel. The CIB's financing is expected to reduce the hotel's annual greenhouse gas emissions by more than 80%.
• While I cannot speak to the decisions of Kingsett Capital, the Fairmont's owners, generally speaking, a building owner must prioritize how capital is used and deep retrofits can be viewed as risky due to high upfront costs and long payback periods. As a result, building owners are often reluctant or unwilling to make these investments.

Background

• As of September 30, 2023:
• The Canada Infrastructure Bank (CIB) is investing in 51 infrastructure projects, including 45 that have reached financial close and 36 in active construction; and
• CIB's $10.1 billion total investment commitments in projects with a total capital cost of $28.9 billion have attracted $9.9 billion in private and institutional capital.
• The CIB has made investment commitments across Canada in its five priority sectors (as of September 30, 2023):
  • Public Transit: 12 projects
  • Clean Power: 8 projects
  • Green Infrastructure: 18 projects
  • Broadband: 8 projects
  • Trade and Transportation: 5 projects
• Below are some notable CIB investments, along with their impact.
• Zero emission buses (ZEBs), across Canada
• As of March 31, 2023: more than 200 ZEBs on the road, including transit buses in Edmonton and school buses in Quebec
• City of Edmonton had 20 ZEBs fully operational as of November 2022 – this was the first project fully completed by the CIB;
• CIB is currently covering upfront capital costs of ZEB transit buses in Brampton, Edmonton, Ottawa, Durham Region, Calgary, York Region, and ZEB school buses in Quebec and BC
• As of March 31, 2023: $1.6 billion in CIB financing to support the purchase of 5,300 ZEBs
• Electric vehicle charging stations, across Canada
• The CIB is providing funding for close to 4,000 public fast charging ports through two investments (1,900 chargers with FLO; 2,000 chargers with Parkland), which has a positive impact on making more charging points available more quickly
• CIB investment: $430 million ($220 million in FLO; $210 million in Parkland)
• Oneida Energy Storage, southwest Ontario
• One of the largest clean energy storage facilities in the world
• Will help reduce greenhouse gas emissions (GHG) by 4.1 million tonnes, the equivalent of taking 40,000 cars off the road every year
• More than 60 workers on-site daily, half of whom are members of a joint venture between Six Nations of the Grand River Development Corporation and Aecon
• Operations expected to begin in 2025; will provide enough power to meet peak demand of a city the size of Oshawa
• CIB investment: up to $535 million
• Enhanced broadband in underserved Manitoban communities
• CIB investment will help provide broadband of up to 1 gigabit per second to 49,000 underserved households across rural municipalities
• Up to 400 jobs during construction and 50 permanent jobs
• CIB investment: $164 million; total project value: $328 million
• REM in Montréal
• 26 stations and 67 km of tracks, almost doubling the current Métro network, largest public transit project in Québec in 50 years
• Once fully in service, REM will contribute to decreasing 2.5 million tonnes of GHGs through 25 years of operation
• CIB investment: $1.28 billion
• Varennes carbon recycling
• One of the world's first large-scale biorefinery coupled with an electrolyzer producing biofuels and circular chemicals
• Will reduce GHG by more than 170,000 tonnes annually
• Creates 500 construction jobs and about 100 permanent jobs during operations
• Commercial operations expected to launch in 2025
• CIB investment: $277 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.

Real Estate Investment Trusts (REITs) and Avenue Living

• The CIB's Building Retrofits Initiative (BRI) provides financing for capital costs of energy retrofits, using energy savings, efficiencies, and operating cost savings for repayment. Private-sector buildings eligible for funding under the BRI include commercial, industrial, and multi-unit residential buildings. The CIB's financing is not available for building renovation projects that are not decarbonization retrofits. Ultimately, energy savings, efficiencies and operating cost savings are passed on to building owners and tenants.
• As of March 31, 2023, the CIB has committed $1 billion towards building energy retrofits across Canada. These investments are largely in commercial properties, including hotels, but also include universities, hospitals, and some multi-residential properties.
• As of November 2023, the CIB has announced one investment commitment towards multi-unit residential building retrofits under the BRI, a $130 million loan to Avenue Living Asset Management, an owner and operator of properties primarily in Alberta and Saskatchewan. The CIB's loan will finance retrofits at 240 buildings within Avenue Living's portfolio, optimizing energy performance for more than 6,400 residential units.
• Avenue Living has not used any funding from the CIB as of November 2023, and has confirmed to the CIB that no project notices have been provided to evict any tenants in relation to the CIB funded project. Senior management from Avenue Living indicated to the CIB their willingness to engage in further discussion about rental rates and retrofits directly with tenants.
• [redacted]
• The CIB measures the impact of its investments under the Building Retrofits Initiative by measuring the GHG reductions that result from the projects the CIB invests in. The CIB's overall portfolio target is to invest in projects that result in an expected, cumulative annual GHG reduction of 13 megatonnes by 2026-27. To date, the CIB estimates its investments will result in a 240,000 tonne reduction annually. These investments also provide broader public and social outcomes, improved interior air quality and energy performance.
• The CIB anticipates that multi-unit residential building owners and tenants responsible for utilities (such as electricity bills) can expect to achieve savings over the long-term due to the lower annual utility and maintenance costs associated with the retrofits that CIB helps finance. The CIB does not track these savings over the lifetime of the project.

CIB's Partnership with KingSett Capital and Fairmont Royal York Hotel

• The CIB has provided a repayable loan of $46.5 million towards deep energy retrofits at the Fairmont Royal York Hotel. Compared to conventional retrofits that provide modest annual energy savings, deep retrofits involve upgrades to multiple building systems and equipment such as replacing roofs, adding, upgrading, or rearranging windows, adding or increasing insulation, replacing or improving the building envelope or cladding, and replacing the heating, ventilation, and air-conditioning system with more efficient ones. Deep retrofits typically save at least 50% in energy consumption and 70% or more in GHG emissions.
• Building owners, such as KingSett Capital, the owner of the Fairmont Royal York Hotel, face barriers in undertaking deep energy retrofit projects all at once due to the high upfront costs (which will be recovered through operating cost savings over decades throughout the lifespan of the building). As a result, while some project proponents may have access to private capital, the return on investment over the near and medium term is not sufficient to encourage project proponents to privately finance high upfront costs for deep retrofits. In such cases, the CIB's financing can address these investment barriers by providing a low-cost loan that is repayable over a longer term.
• The CIB's investment in the Royal York Hotel is aligned with the objectives set out under the Building Retrofits Initiative to reduce GHGs, transform the market by incentivizing building owners to go deeper in the scoping of their decarbonization measures, and support economic and social benefits. The CIB's investment will result in a significant reduction in carbon emissions, with the aim of reducing the high GHG emissions generated by the hotel, a traditional heritage building that first opened in 1929 and presents unique decarbonization challenges. The CIB's financing will allow the hotel's owner to achieve more than 80% reduction in GHGs by eliminating the use of fossil fuels and steam as energy sources for heating, ventilation, air-conditioning, domestic hot water, and hotel operations. This is a valuable demonstration of the ability to deliver significant carbon reductions in a building of this age.

Canada Infrastructure Bank Impact on Fiscal Framework

Issue / question

How much is the Canada Infrastructure Bank costing taxpayers?

Suggested response

• Unlike a grant program, the Canada Infrastructure Bank (CIB) provides financing in the form of investments, which are expected to be repaid to the Bank over time. The CIB's investments attract private and institutional funds to infrastructure projects that might not get built without the CIB's investment or would be significantly delayed.
• The CIB was allocated $35 billion over 11 years to invest in infrastructure projects. The Bank can expense against the fiscal framework to cover operating expenses, investment risks, concessionary loan terms, and potential losses. The maximum cost to taxpayers will not exceed $15 billion over 11 years.
• As of September 30, 2023, the CIB had incurred $111 million against the maximum fiscal expense.

Background

• The 2016 Fall Economic Statement announced the creation of the Canada Infrastructure Bank (CIB) to invest $35 billion over 11 years, with the fiscal expense not to exceed $15 billion, into new revenue-generating infrastructure projects and structure its financial support to attract private sector capital.
• Parliament has authorized statutory funding of not more than $35 billion under the Canada Infrastructure Bank Act. Projections for capital and operations are booked against the fiscal framework annually by the Department of Finance through the Main Estimates.
• For 2023-24, the CIB appears in the 2023-24 Main Estimates under the Department of Finance with planned payments of $2.777 billion.
• The planned payments of $2.777 billion are based on the estimated amounts for CIB investments and operating expenses in 2023-24, which were presented in the approved 2022-23 Corporate Plan.
• For fiscal 2023-24, the CIB estimated a capital budget for investments of $2.685 billion and a total delivery cost of $92 million for a total of $2.777 billion. The capital budget is for planned investments across priority sectors.

Capital Appropriations

• The CIB tracks its use of capital at three points in the lifecycle of an investment.
• First, the CIB tracks “Investment Commitments.” This is the point at which the CIB and the CIB's investment partners have agreed to terms setting out the capital commitment of each party and other financial terms (e.g., length of investment, interest rates and financing structure). The capital is considered allocated to the project and no longer available for other purposes. As an indicator, investment commitments provide the best picture, as approved by the Management Investment Committee and the Board of Directors, of the overall allocation of CIB capital to projects and priority sectors. The CIB's reporting on investment progress reflects its level of investment commitments.
  • As of September 30, 2023, the CIB's investment commitments stood at $10.1 billion, leveraging $9.9 billion in private and institutional capital. When combined with public partner investment, the CIB has catalyzed $28.9 billion worth of infrastructure projects for Canadians.
• Second, the CIB tracks “financial closes.” A financial close means that the CIB and investment partners have completed all due diligence and entered into legally binding agreements. CIB financing begins to flow to the project and the expected financial and public impact outcomes are included in the CIB's corporate scorecard. When financial close occurs, a government funding receivable is recognized on the CIB's financial statements for the CIB's total obligation, which is then subsequently reduced as funding to the CIB's counterparts occurs.
  • As of September 30, 2023, the CIB reached financial close on 45 of the 51 investment commitments in its portfolio. These projects total $9.5 billion in investments.
• Third, the CIB tracks the “draws” on a project. Once a project has reached financial close, investment partners can begin to draw on CIB financing to construct and operate projects in accordance with the terms of the financing agreement. These draws are made against the CIB's appropriation from government, which was set initially in legislation at $35 billion.

Fiscal Expense

• The CIB differs from a grant program in that it extends financing for projects and has an expectation of repayment for the investments it makes. As such, the CIB considers both revenues and expenses in tracking against the $15 billion in fiscal expense. Figures include the value of the concessionary financing that the CIB provides, provisions for potential losses on investments, regular operating expenses and the returns associated with the repayment of loans provided.
• The operating budget includes compensation, professional fees, premises and equipment, travel and communication, information technology and administration. For the year ended March 31, 2023, operating expenses consisted of $30.2 million for compensation, $10.7 million in professional fees, $4.6 million for administration and $0.5 million for amortization of capital assets.

Gordie Howe International Bridge Project Status

Issue / question

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

Suggested response

• Construction on all components of the Gordie Howe International Bridge Project is progressing well. The bridge towers are almost at their full height of 722 feet, and more than half of the bridge deck is complete marking 2023 as a year of significant progress.
• 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 in a better position this winter 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 (I-75) in Michigan with ramp construction continuing and reconstruction of all four bridges over the I-75 complete and reopened to the public. 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 December 2023. More than half of the bridge deck is now complete, marking 2023 as a year of significant progress.
• The contractual date for the bridge opening remains November 2024, but potential delays to the schedule have been reported by the Private Partner. Delays are common 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 implement 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 more than 10,000 local workers and supported over 265 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 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 Montréal and the South Shore.
• The first segment of the Réseau express métropolitain light rail corridor crossing the Samuel De Champlain Bridge and connecting the South Shore to downtown Montréal began revenue service in July 2023.
• Work is progressing to complete the outstanding components of the project that were delayed because of the pandemic.

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 Lawrence 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 (INFC) as the project lead, Public Services 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 Réseau express métropolitain (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., the outside shoulders were widened.
• INFC and Autorité régionale de transport métropolitain (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.
• In early 2023, INFC received two coroner's reports following suicides from the multiple use path on the bridge in previous years. The report recommended improvements to the dissuasive barrier that runs the length of the multiple use path. An additional report was received in November 2023, following a May 2023 suicide from the roadway portion of the bridge that recommends installing barriers along the roadway decks. Existing measures in place, include dissuasive barriers, the presence of patrol officers, and the real-time camera surveillance in function 24 hours a day, seven days a week, follow established best practices for bridge safety. A working group has been established to identify and evaluate potential additional measures that could be considered to prevent suicides.
  
• Citizens along the highway portion of the Samuel De Champlain Bridge Corridor have complained that noise generated by the highway exceeds the limit that the Private Partner is contractually required to respect. The Private Partner expects to replace the noise barrier in Verdun by late December 2023 to address the concerns. Further noise measurements and discussions with the Private Partner will be needed in spring 2024 to determine whether additional barriers or improvements to existing barriers are required.
• 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.
• 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 invested $273.3 million for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
• The 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.

If asked about the features of the Bonaventure Expressway reconfiguration project:

• 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.

If asked about the current phase of the project:

• The Jacques Cartier and Champlain Bridges Incorporated is currently working on the design 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 Housing, 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.
• Inaugurated 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 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 toolbox 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, but they are 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.

P3 Canada Fund

Issue / question

What is the status of the P3 Canada Fund?

Suggested response

• The P3 Canada Fund was created to improve the delivery of public infrastructure and provide better value, timeliness, and accountability by increasing the effective use of P3s.
• Upon dissolution of Public Private Partnerships Canada in 2018, the administration of the remaining projects was transferred to Infrastructure Canada. Projects cover various asset classes including public transit and transportation, national highways, water and wastewater, and energy sectors.
• All the projects are now in operation and Infrastructure Canada will continue to manage the fund in accordance with its terms and conditions and the Financial Agreements in place.

Background

• PPP Canada Inc. was incorporated under the Canada Business Corporations Act on February 12, 2008, and became operational in February 2009. The P3 Canada Fund was created to improve the delivery of public infrastructure and provide better value, timeliness, and accountability by increasing the effective use of P3s.
• Upon dissolution of PPP Canada in 2018, out of the 25 P3 Canada Fund projects, the administration of 24 were transferred to Infrastructure Canada (INFC) and one was completed before the transfer. The projects cover various asset classes including public transit and transportation, national highways, water and wastewater, and energy sectors.
• The P3 Canada Fund has invested over $1.3 billion in 25 large or complex infrastructure projects across the country, such as an airport in Nunavut (funding - $77.3 million / project cost $191.9 million), a highway bypass in Regina (funding - $200 million / project cost - $1.219 million) and the recently operationalized Tłı̨chǫ All Season Road in Northwest Territories (funding - $53.3 million / project cost - $217.1 million).
• Construction is complete for all 25 P3 Canada Fund projects, which are now in operation. Edmonton LRT was the final project to reach substantial completion in November 2023.
• These P3s were implemented over 10 years and have combined capital costs of over $6 billion, resulting in savings of approximately $1.9 billion compared to traditional procurement approaches.

P3 Canada Fund Portfolio Novated to INFC

Project	Maximum P3 Canada Fund Contribution	Total Project Cost	Substantial Completion Date
In Operation
Chief Peguis Trail Extension (Winnipeg, MB)	$25 million	$100 million	01 Dec 2011
Wastewater Treatment Facility (Lac La Biche, AB)	$3.80 million	$17.5 million	30 May 2013
Kokish River Hydroelectric Project (Namgis First Nation, BC)	$7.2 million	$196 million	01 Apr 2014
Evan-Thomas Water and Wastewater Treatment Facility (Kananaskis Country, AB)	$9.95 million	$39.8 million	08 Sep 2014
Biosolids Management Facility (Sudbury, ON)	$11 million	$44 million	08 May 2015
North Saskatchewan River Bridge (Edmonton, AB)	$36.8 million	$148.1 million	01 Oct 2016
Lincoln Station (Coquitlam, BC)	$7 million	$29.1 million	31 Oct 2016
Wastewater Treatment Facility (Regina, SK)	$58.5 million	$237.2 million	31 Dec 2016
Civic Operations Centre (Saskatoon, SK)	$42.9 million	$142.9 million	31 Dec 2016
Transit Maintenance Facility (Barrie, ON)	$5.8 million	$23.5 million	28 Feb 2017
Downtown Eastside Housing Renewal (Vancouver, BC)	$29.7 million	$121.5 million	30 Dec 2017
International Airport Improvement (Iqaluit, NU)	$77.3 million	$191.9 million	30 Dec 2017
GO Transit East Rail Maintenance Facility (Whitby, ON)	$94.8 million	$455.2 million	14 Mar 2018
Organic Biofuel Facility (Surrey, ON)	$16.9 million	$50 million	26 May 2018
North Commuter Parkway and Traffic Bridge Replacement (Saskatoon, SK)	$57.68 million	$230.7 million	31 Oct 2018
Stoney CNG Bus Storage and Transit Facility (Calgary, AB)	$46.9 million	$173.7 million	31 Jan 2019
Southwest Rapid Transitway and Pembina Highway Underpass (Winnipeg, MB)	$91.7 million	$346.8 million	31 Oct 2019
Bypass Project (Regina, SK)	$200 million	$1,219 million	31 Oct 2019
Biosolids Management Project (Hamilton, ON)	$22.9 million	$92.4 million	30 Apr 2020
Residuals Treatment Facility (Victoria, BC)	$41 million	$217.1 million	31 May 2020
Saint John Safe Clean Drinking Water (Saint John, NB)	$52.30 million	$192.4 million	Jun 2019
Tłı̨chǫ All Season Road (Whatì, NWT)	$53.3 million	$217.1 million	30 Nov 2021
(UNANNOUNCED) [redacted]	[redacted]	[redacted]	[redacted]
Light Rail Transit (Edmonton, AB)	$250 million	$1,522 million	04 Nov 2023
Total	$1.3 billion	$6.2 billion	-

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.
• 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.

• Previous
• Table of Contents
• Next