Portfolio Coordination

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• Table of Contents

29. Value Proposition of the Canada Infrastructure Bank
30. Canada Infrastructure Bank Projects
31. Canada Infrastructure Bank Operations
32. Canada Infrastructure Bank Act Legislative Review Findings
33. Lake Erie Connector Project
34. Gordie Howe International Bridge Project Status
35. Samuel De Champlain Bridge Corridor Project Status and Integration of the Réseau express métropolitain
36. Waterfront Toronto
37. Bonaventure Expressway Redevelopment
38. Public-Private Partnerships
39. P3 Canada Fund
40. High Frequency Rail

Value Proposition of the Canada Infrastructure Bank

Issue / Question

Why does the Government of Canada continue to spend money on the Canada Infrastructure Bank?

Suggested response

• The Canada Infrastructure Bank (CIB) represents an additional federal tool to help close the infrastructure gap. Its unique model of investing in revenue-generating projects and attracting private capital allows the CIB to take on risks that the private sector alone would not be able to bear. The CIB model is helping projects get built at a lower cost to taxpayers.
• The CIB has mobilized $11.1 billion in private and institutional capital towards 56 projects with a combined value of $31.7 billion. Thirty-seven of these projects are under active construction. Through partnerships with the private sector, these projects are also benefiting from additional innovation and due diligence.
• The Canada Infrastructure Bank Act legislative review re‑affirmed the ongoing need for the CIB’s funding model, and that the Bank’s involvement allows for projects that would otherwise get delayed or not get funded to move forward.

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 of Canada 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 December 31, 2023:
  • CIB is investing in 56 infrastructure projects (including 53 investments that have reached financial close and 37 in active construction);
  • CIB’s approved investments of $11.6 billion have attracted $11.1 billion in private and institutional capital; and
  • CIB’s approved investments are in projects with a total capital cost of $31.7 billion.

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Canada Infrastructure Bank Projects

Issue / Question

How have the Canada Infrastructure Bank’s projects and investments progressed over the years?

Suggested response

• I am encouraged to see the Canada Infrastructure Bank’s (CIB) growing portfolio of projects. It has now committed $11.6 billion in capital to advance 56 infrastructure projects worth $31.7 billion from coast to coast to coast.
• The Bank has also made significant progress in attracting private and institutional investment in projects: $11.1 billion to date.
• Thirty-seven of its projects are now under construction, and several of its projects are also in operation, including:
  • Phase 1 of the REM light rail project which now provides daily ridership to 30,000 citizens in Montréal; and,
  • More than 200 zero emission transit and school buses currently in service in several municipalities, including 20 transit buses in Edmonton where the Transit Service provides more than 87 million rides a year across its fleet.

Background

• As of December 31, 2023:
• The CIB is investing in 56 infrastructure projects, including 53 that have reached financial close and 37 in active construction; and
• CIB’s $11.6 billion total investment commitments in projects with a total capital cost of $31.7 billion have attracted $11.1 billion in private and institutional capital.
• The CIB has made investment commitments across Canada in its five priority sectors (as of December 31, 2023):
  • Public Transit
  • Clean Power
  • Green Infrastructure
  • Broadband
  • Trade and Transportation
  • 12 projects
  • 10 projects
  • 20 projects
  • 9 projects
  • 5 projects
• Notable CIB investments, along with their impact, include:
• 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, serving 174,000 daily transit riders;
  • CIB 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 British Columbia; and
  • 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 (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 Manitoba communities:
• Low population density and current lack of broadband infrastructure in Manitoba make the cost of connection per household very high, which was a deterrent to private investment
• 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 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 GHGs 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.

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Canada Infrastructure Bank Operations

Issue / Question

What are the operating costs of the Canada Infrastructure Bank, including compensation?

Suggested response

• Like other Crown corporations, the Canada Infrastructure Bank (CIB) incurs operating expenses in carrying out its mandate. The CIB’s Board of Directors, which operates at arm’s-length from the Government, oversees day-to-day operations and ensures that all expenditures are aligned with its goals.
• In 2022-23, the CIB reported operating expenses of $46 million, which accounted for 0.5% of the Bank’s $9.7 billion in committed capital at the time. This provides good value for taxpayers. As of the end of the third quarter, the CIB had incurred operating expenses of $38.7 million in 2023-24.
• The CIB’s compensation framework aligns with best practices of Crown corporations and the private sector across Canada, ensuring it attracts and retains top talent. The CIB is bound by the Privacy Act and the Access to Information Act. Information concerning specific individuals and their compensation is personal information and protected under this legislation.

Background

CIB Operations

• The operating expenses of the Canada Infrastructure Bank (CIB) were $46 million in 2022-23, including $30.2 million in compensation, compared to $36.6 million in 2021-22, including $23.9 million in compensation. As of the end of the third quarter on December 31, 2023, the CIB’s year-to-date operating expenses for 2o23-24 were $38.7 million, including $26.4 million in compensation.
• The year-over-year increase between 2021-22 and 2022-23 was primarily attributable to a $6.3 million increase in compensation, due to the continued buildout of staffing to meet the demands of the CIB’s increased investment activity. As of March 31, 2023, the CIB had 122 employees.
• In addition to compensation, the CIB’s operating expenses are related to general and administration expenses, which include professional fees for due diligence activities for projects, as well as for non-transaction activities such as the investment, accounting, and risk management frameworks.
• The CIB provides quarterly financial details on its website and in its annual report.

CIB Compensation

• In 2022-23, the CIB paid $30.2 million in compensation, including $4.8 million to “key management personnel,” which are defined as those officers having authority and responsibility for planning, directing, and controlling the activities of the CIB, including members of the Board of Directors. As of March 31, 2023, the median base salary for executive officers (other than the CEO and Board members) was $293,550.
• As an arm's length entity, the CIB’s Board of Directors is responsible for the governance and oversight of the strategic direction, forward planning, investment decisions and business operations of the CIB, in alignment with the Government of Canada’s identified priorities.
• Its compensation framework, including the governance, compensation philosophy, structure, and competitive positioning, is disclosed via the CIB Annual Report in compliance with requirements for Crown corporations under the Financial Administration Act and applicable Treasury Board policies. Compensation expenses for each fiscal year are also reported in the CIB’s annual financial statements.
• Chief Executive Officer (CEO) compensation, which includes ranges for short- and long-term performance incentive awards, is recommended by the Board of Directors based on market comparables and position requirements. The final determination is made by the Govenor in Council.
• All Crown corporation CEOs are subject to the annual performance review process for Governor-in-Council appointees. Performance rating recommendations are provided by the Board of Directors to the designated Minister.
• The CEO’s base salary is fixed by the Governor in Council on the recommendation of the Board at $510,000 - $600,000. The CEO also receives both short- and long-term performance-based incentive awards.
• Employees (other than the CEO) receive a base salary for carrying out their day-to-day responsibilities. Salaries reflect each employee’s level of responsibility, skills, experience, and market competitiveness. Salary reviews are overseen by the Human Resources and Governance Committee of the Board of Directors; they are carried out periodically and informed by a market review of the benchmark group and other relevant comparable organizations.
• CIB executives are paid a performance-based incentive award which ranges from 20 to 110% of the executive’s base salary. Executives are required to defer a portion of the incentive award over three years. This is to ensure that executives are delivering on long term goals and encourage employee retention.
• The following performance-based incentive information was provided by the CIB in response to parliamentary question Q-2514. The information has not yet been publicly divulged and is scheduled to be tabled mid to late May.
  • The CIB indicated it paid out a total of $8,175,159 in performance-based incentives in 2023-24, broken down as such:
• $1,224,457 to 6 employees at the senior executive level
• $6,950,702 to 102 non-senior executive employees
• All CIB employees are eligible to participate in the CIB’s performance-based incentive plan. The incentive plan target for each employee is determined based on a percentage of the employee’s base salary earned during the preceding financial year in alignment with market practices for comparable positions. At the end of the financial year, the employee’s performance is evaluated in relation to the achievement of the CIB’s planned results outlined in the Corporate Plan and the employee’s personal objectives and actions in contributing to the CIB’s values and culture.

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Canada Infrastructure Bank Act Legislative Review Findings

Issue / Question

What are the overall findings of the legislative review of the Canada Infrastructure Bank Act?

Suggested response

• The legislative review of the Canada Infrastructure Bank Act examined whether the Act functioned as it was intended when it was first established in 2017. The review was informed by extensive engagement with key partners and stakeholders. Overall, the review found that the legislation governing the Canada Infrastructure Bank (CIB) is fit for its purpose and the CIB’s objectives remain sound and relevant.
• The review also confirmed the CIB’s strong value-add, which was echoed by stakeholders. Specifically, it found that the CIB has grown as an institution and is playing a critical role in supporting the Government's efforts to expand infrastructure development, facilitate the transition to a net-zero economy, and foster Indigenous reconciliation across Canada.
• The review also highlighted some areas for improvement including the need for greater clarity on the CIB’s role and model, and for the need to expand its reach to smaller municipalities and Indigenous communities.
• The Government of Canada reinforced these findings and related guidance to the CIB in a Statement of Priorities and Accountabilities that I issued to the Chair of the CIB Board in September 2023. Work is underway to respond to these findings.

Background

• The Canada Infrastructure Bank 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.
• Beginning in the fall of 2022, consultations were conducted with departments and agencies at the federal, provincial, and territorial level. Externally, the legislative review engaged representatives from banking and finance, business, and industrial sectors, as well as national Indigenous organizations.
• In January 2023, a public call for written comments was posted on the Infrastructure Canada website and promoted on the Consulting with Canadians website and on the CIB’s website, as well as through social media. Written submissions received through this process included those from provincial and territorial governments, municipalities, unions, and think tanks.
• In total, representatives from over 80 stakeholder organizations were engaged and over 40 written submissions were received.
• The review assessed: whether the premises and context that underpinned the creation of the CIB 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 of Canada 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 the House of Commons Standing Committee on Transportation, Infrastructure and Communities (TRAN) examined the CIB’s progress in early 2021 and issued a report in March 2022 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.
• However, no witness testimony called for the CIB to be abolished. While some witnesses were critical, others were supportive. Moreover, the Committee’s report relied exclusively on testimony and data compiled from February to March 2021, as well as the April 2021 Parliamentary Budget Officer report. The Committee’s report was issued more than a year after its study was completed. By 2022, the acceleration of the Bank’s activities was evident and continued since then. Given the time spent between the end of the study and the issuance of the report, such progress was not captured.
• The Government Response to the Committee’s report was tabled on September 15, 2022. The Government Response declines the Committee’s recommendation and highlights CIB investments and close collaboration with provinces, territories, municipalities and Indigenous partners to respond to community needs, including mitigating and adapting to climate change; connecting communities through transit and broadband; addressing the Indigenous infrastructure gap; and advancing projects of national significance.
• Between May 2023 and June 2023, TRAN heard testimony as part of its study on the Role of McKinsey & Company in the Creation and the Beginnings of the Canada Infrastructure Bank. The Committee has not yet issued a report on this study.

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Lake Erie Connector Project

Issue / Question

What was the Canada Infrastructure Bank’s (CIB) role in the Lake Erie Connector project? Does the Government of Canada consider the project a failure on the part of the CIB?

Suggested response

• The CIB had committed to finance approximately one-third of the costs for this $1.7 billion project, or up to $655 million, with private-sector lenders providing additional financing.
• In 2022, the project was suspended by the proponent following significant cost escalation associated with the post-COVID-19 market. Negotiations ceased before a deal was finalized; therefore, no funding was provided by the CIB for the project.
• In early 2024, the rights to the project were purchased by a new proponent and the CIB is exploring a possible investment partnership with them.
• As is standard practice for any financial institution making major investments, the CIB conducts due diligence before committing funds to a project.
• Due diligence is an important step that all banks undertake to assess project-related risks and inform their investment decisions.
• In the case of Lake Erie Connector, the CIB spent $875,332 to support due diligence activities. The international aspect of the project necessitated a significant number of legal services and technical analysis. Both the CIB and the new proponent have confirmed that the due diligence work previously conducted by the CIB would be applicable to this new phase of the project, should the partnership proceed.
• The amount spent by the CIB on due diligence activities is less than 0.1% of the original investment commitment and is consistent with accepted industry standards for costs related to due diligence activities.

Background

• The Lake Erie Connector was a proposed 117 km underwater transmission line connecting Ontario and Pennsylvania. The 1,000 megawatt, high-voltage direct current connection was expected to help lower electricity costs for customers in Ontario and improve the reliability and security of Ontario’s energy grid. It was also expected to reduce greenhouse gas (GHG) emissions, create 845 permanent jobs, drive more than $300 million in economic activity, and boost Ontario’s GDP by $8.8 billion.
• On April 13, 2021, the CIB announced an investment commitment of up to $655 million in the Lake Erie Connector, with ITC Investment Holdings (a subsidiary of Fortis Inc.) and private-sector lenders funding the balance of the $1.7 billion total project costs.
• On July 28, 2022, Fortis Inc. announced it had suspended development activities and commercial negotiations related to the Lake Erie Connector project, citing macroeconomic conditions that prevented ITC Investment Holdings from securing a viable transmission service agreement.
• Commercial negotiations related to the Lake Erie Connector were suspended before the project reached the financial close milestone, and no CIB financing was provided with respect to the project as a result.
• The CIB incurred $875,332 in legal expenses and technical advisory expenses to conduct due diligence on the Lake Erie Connector Project:
  • $555,145 to Gowling WLG for legal services;
  • $248,170 to Morgan, Lewis & Bockius for legal services;
  • $70,991 over two contracts to PA Consulting Group for GHG reductions analysis; and
  • $25,010 to Samuel Street Advisory for financial structuring advice.
• Total due diligence costs incurred represent less than 0.1% of the CIB’s previously announced investment commitment in the Lake Erie Connector Project and are consistent with reasonable costs and expenses incurred by private and institutional investors to support due diligence activities related to cross-border international infrastructure projects.
• At the April 9, 2024, TRAN meeting, CEO Ehren Cory stated that the rights to the project have been purchased by a new proponent, NextEra Energy Transmission (NEET), and that the CIB is currently exploring opportunities with them about an investment partnership that will see the resumption and completion of the Lake Erie Connector.
  
• NEET is a leader in utility transmission throughout North America with generating capacity in 40 American states and Canada. They own, develop, finance, construct, operate and maintain transmission assets across the continent, operating through regional subsidiaries to integrate renewable energy and strengthen the electric grid. They are the world’s largest generator of renewable energy from the wind and sun, and a global leader in battery storage and green hydrogen development. Their portfolio includes multiple utility assets, as well as numerous projects under development across the United States and Canada.
• At the April 11, 2024, TRAN meeting, Matt Pawlowski (Vice-President of Development, NEET) confirmed that NEET is looking forward to engaging with the CIB as a potential partner. He also confirmed that the due diligence work that has already been completed will be beneficial, since it means that the CIB is a potential partner that already has fundamental information on the subject.
• In addition to Lake Erie Connector, the CIB incurred expenses for legal and technical professional and advisory services on two other projects that were abandoned or indefinitely delayed and where no funds were provided to the project proponents:
  • Whapmagoostui Kuujjuaraapik Hybrid Power Plant Project, from 2021 to 2022 ($185,870)
  • BC Transit Zero Emission Buses, from 2021 to 2002 ($84,337).

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Gordie Howe International Bridge: Project Status

Issue / Question

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

Suggested response

• Significant progress has been made with the bridge structure expected to connect Canada and the United States in the coming weeks and with a new completion date of September 2025.
• Delays are a common aspect of large, complex infrastructure projects, particularly in light of the exceptional challenges posed by the pandemic, which included navigating hundreds of emergency orders across various jurisdictions in both Canada and the United States.
• In response to the unprecedented COVID-19 disruptions, the contract was amended to address schedule and cost impacts to ensure that the project is delivered to Canadians in a safe, responsible, and timely manner.
• Once completed, we will see a new, state of the art international crossing supporting long term jobs and binational trade that will fuel 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 public-private partnership (P3) with Bridging North America (BNA). Canada is funding the full amount with costs to be recouped from toll revenue.
• Work continued throughout the pandemic on all project components. The Bridge towers are complete and 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. The bridge deck and stay cables are almost complete with both sides expected to join over summer 2024.
• Originally, the $5.7 billion (CDN) project was scheduled for completion in November 2024, the project experienced disruptions as a result of the COVID-19 pandemic. The disruptions were even more prevalent for this international project as hundreds of emergency orders were enacted in multiple jurisdictions spanning Canada, Ontario, Windsor, the United States, Michigan, and Detroit requiring significant efforts to ensure compliance with these orders and the direction of various public health authorities.
• Although billed as a fixed price, date certain contract, there are many processes under the P3 agreement where the price and dates can be changed based on the terms and risk sharing arrangement defined under the contract. In recognition of the COVID-19 impacts and supported by robust analysis by industry-leading technical, financial, and legal experts, the contract was amended to address cost and schedule impacts, and ensure this critical infrastructure project is delivered to Canadians in a safe, responsible, and timely manner.
• The new contract value is estimated at $6.4 billion with a new fixed date for substantial completion of September 3, 2025. This new date is secured with significant liquidated damage to ensure the new date is met.
• The project is significantly benefiting local communities through its comprehensive Community Benefits Plan, which includes employment, training, and educational opportunities, as well as 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.

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Samuel de Champlain Bridge Corridor Project: 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 Réseau express métropolitain light rail corridor, which includes a segment crossing the Samuel De Champlain Bridge, officially began its revenue service in July 2023. This new service seamlessly connects the South Shore to downtown Montréal, marking a significant milestone in the enhancement of the city's public transportation network.
• Efforts are actively underway to complete the remaining elements of the project that experienced delays due to the pandemic. We are committed to finalizing all components to fully realize the project's benefits for the community.

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. 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. In coordination with REM, the reconfiguration is expected in the spring of 2025.
• In early 2023, INFC received two coroner’s reports following suicides from the multi-use path on the bridge in previous years. The reports recommended improvements to the dissuasive barrier that runs the length of the multi-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 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.
• Some citizens along the highway portion of the Samuel De Champlain Bridge Corridor in Verdun have complained that noise generated by the highway exceeds the limit that the Private Partner is contractually required to respect. To address these concerns, the Private Partner replaced the previous noise abatement barriers with new, thicker, and more acoustically absorbent barriers. The height of these barriers was increased in some areas. A commitment was made to elected officials and citizens to carry out a follow-up noise measurement campaign in 2024 to determine the effectiveness of the new noise abatement barriers and to share the results.
• 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 and was completed in January 2024 on time and on budget. Project completion, including the restoration of lands left vacant, is anticipated in 2025.

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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 $1.34 billion ($416.6 million in federal funding) for the ongoing Port Lands Flood Protection Project (PLFP) and Enabling Infrastructure. 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 4,800 to 6,000 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.
• 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.

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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 design and details of the project and ensure its timely completion.

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.

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 2023-24, and $225.5 million in remaining amortization to JCCBI for the redevelopment of the federal portion of the Bonaventure Expressway into an urban boulevard.
• On December 19, 2023, the Minister of Transport, accompanied by JCCBI’s CEO and the Mayor of Montréal formally announced the reconfiguration of the Bonaventure Expressway into a boulevard starting in 2025.
• 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.

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Public-Private Partnerships

Issue / Question

How can the private sector help advance Canada’s infrastructure policy objectives? Is the public-private partnership (P3) market in decline?

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. This recognition highlights Canada’s innovative approach to infrastructure development.
• The success of P3s demonstrates the significant benefits that the involvement of private investors can bring to public infrastructure projects. This includes innovative planning and design, disciplined budgeting, and timely project delivery. By transferring specific project-related risks where it makes sense, P3s offer an effective way for all governments to manage complex projects.
• With the increasing size and complexity of infrastructure projects, there is a growing movement toward ‘collaborative’ P3 models. These models aim to achieve a more balanced risk-sharing arrangement between public and private partners and can help ensure robust bidder interest.
• While P3s remain a critical component of the Government of Canada's strategy, the selection of the right model depends on the specific needs and capabilities of each jurisdiction and the unique challenges of each project.
• The market has responded by developing new ‘collaborative’ models that can promote enhanced risk-sharing between the public and private sectors and ensure sufficient bidder interest. P3s will also continue to be one option in the Government of Canada’s tool kit, with jurisdictions needing to select models that best suit their needs and capabilities. 

Background

• There are a variety of different Public-Private Partnership (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. Public authorities have also been working with private entities to segment larger, complex projects such as transit developments into smaller contracts. 
• Several transit projects that were previously announced as P3s have been relaunched under traditional procurement routes, including the Port Mann/Highway 1 (British Columbia) and Highway 7 - Kitchener to Guelph (Ontario) projects. The George Massey Tunnel project in British Columbia was also initially proposed as a P3 arrangement in 2011 but was reprocured in 2023 as a progressive Design-Build with no private financing.
• It takes time to procure large infrastructure projects and it is unsurprising that some projects’ financing, design, or scope change before work commences. This is particularly true when economic and risk factors are changing significantly. The ‘co‑development’ aspect of collaborative models increases the understanding of project risks and their allocation before contracts are signed, which may lead to better outcomes.
• Though collaborative, ‘alliance’ or progressive models are yet unproven in the market, the many market examples demonstrate their emerging popularity. For example, 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 and the original Union Station Enhancement Project P3 was also replaced by an alliance P3 arrangement. 

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P3 Canada Fund

Issue / Question

What is the status of the P3 Canada Fund?

Suggested response

• The P3 Canada Fund was created to improve public infrastructure delivery and provide better value, timeliness, and accountability through the effective use of public-private partnerships.
• Following dissolution of Public Private Partnerships Canada in 2018, Infrastructure Canada took over management of ongoing projects. These projects span a range of sectors and asset classes including public transit and transportation, national highways, water and wastewater, and energy.
• All the projects are now in operation. Infrastructure Canada remains committed to overseeing 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 public-private partnerships (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 October 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
Light Rail Transit (Edmonton, AB)	$250 million	$1,522 million	16 Oct 2023
Total	$1.3 billion	$6.2 billion	-

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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.
• To support the Government of Canada’s National Housing Strategy, Infrastructure Canada is working with its partners to ensure that the project is a powerful catalyst for housing development.
• 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.
• The Government of Canada will ensure that HFR connects with local transportation networks and fosters an integrated intercity transportation system that is sustainable for the long-term and serves as a catalyst for housing development and economic growth.
• 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.
• Budget 2024 provided $368.5 million over six years in funding to VIA HFR and $3.3 million over 1 year to Infrastructure Canada to advance the design and development of the HFR project.

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