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Key Issues

Key Issues

  1. Canada Infrastructure Bank and BC Ferries
  2. HICC’s Role in Oversight and Governance of the Canada Infrastructure Bank
  3. Canada Infrastructure Bank Mandate and Value
  4. Parliamentary Budget Officer Analysis of the Canada Infrastructure Bank

Canada Infrastructure Bank and BC Ferries

Issue / question

What was the Canada Infrastructure Bank’s involvement in BC Ferries’ procurement from China?

Suggested response

  • The Canada Infrastructure Bank (CIB) plays a critical role in supporting infrastructure that Canadians rely on—from clean energy and trade corridors to transit and housing infrastructure.
  • Since 2024, the CIB has been working with BC Ferries to help modernize its fleet and accelerate its transition to cleaner, hybrid-electric vessels.
  • Procurement decisions are made independently by BC Ferries. BC Ferries is best positioned to respond to questions about procurement.

Key points

  • On March 28, 2025, the CIB and BC Ferries reached financial close on a $1 billion credit agreement. On May 22, 2025, the CIB issued a first installment of $133 million to BC Ferries.
  • The CIB is financing approximately one-third of vessel costs (up to $690 million) and more than half of the terminal electrification upgrades (up to $310 million).
  • BC Ferries awarded a contract to CMI Weihai to build four new hybrid vessels following a competitive global tender process. No Canadian shipyards submitted bids through BC Ferries’ global procurement process.

Background

  • The Canada Infrastructure Bank (CIB) has made two investments in support of modernizing BC Ferry Services Inc.’s (BC Ferries) fleet and terminal renewal. The CIB’s involvement is as follows:
    • In May 2024, the CIB reached financial close on a $75 million loan to BC Ferries to help finance the purchase of four zero-emission ferries and install the required charging infrastructure. The CIB’s loan covers the higher upfront capital costs of the ferries compared to diesel, including charging infrastructure, helping to accelerate the electrification of one of the world’s largest ferry networks with environmentally friendly and quieter vessels. Additional details include:
      • Repayment of the investment will come from standard operating revenues comprised of passenger fares and retail revenues. The investment is the CIB’s first in zero-emission ferries, expanding its transit portfolio beyond zero-emission buses.
      • The four Island Class vessels currently under construction will be delivered in two phases, with the first two ferries expected to arrive in British Columbia in spring 2026, and the remaining two ferries in the fall 2026, with all four entering service by 2027. The new vessels will provide two-ship service on the routes connecting Nanaimo Harbour - Gabriola Island and Campbell River - Quadra Island.
      • These four vessels are being constructed by Damen Shipyards, a Dutch company.
    • On March 28, 2025, the CIB and BC Ferries reached financial close on a $1 billion credit agreement to support BC Ferries’ New Major Vessels (NMV) project.
      • The loan is allocated in two tranches: up to $690 million toward vessels costs; and up to $310 million toward electrification infrastructure.
      • On May 22, 2025, the CIB disbursed a first installment of $133 million to BC Ferries.
      • On June 10, 2025, BC Ferries announced it had selected China Merchants Industry Weihai Shipyards to build four NMVs following a rigorous global procurement process that included a public Request for Proposals, comprehensive bid evaluations, international site visits, and independent third-party reference checks.
      • BC Ferries reported that the procurement process yielded no bids from Canadian shipyards. The four new hybrid ferries are to be delivered between 2029 and 2031.
      • Details of the CIB’s investment were published through regulatory filing requirements on June 13, 2025 on SEDAR+ and in BC Ferries’ Annual Report entitled Management’s Discussion & Analysis of Financial Condition and Financial Performance for the fiscal year ended March 31, 2025.
    • While the vessels are being assembled offshore, the NMVs project is expected to generate significant economic benefits in Canada. According to BC Ferries:
      • Over $230 million will be invested locally in maintenance and refits over the first 10 years of service;
      • More than $1 billion will be invested over the vessels’ 45-year service life; and
      • The new fleet is expected to contribute 17,200 job-years, $1.2 billion in wages, and $2.2 billion to British Columbia’s GDP.

HICC’s Role in Oversight and Governance of the Canada Infrastructure Bank

Issue / question

What is the Department’s role in Canada Infrastructure Bank oversight and governance, particularly when it comes to investment decisions?

Suggested response

  • The Canada Infrastructure Bank is an independent Crown corporation. It operates at arm’s length from the government. Its investment decisions are made by its own Board of Directors.
  • A Board of Directors manages the Bank’s operations, makes investment decisions, establishes internal policies, and ensures the Bank operates within its mandate.
  • The Bank is ultimately accountable to Parliament through the Minister of Housing and Infrastructure, ensuring the Bank’s work is aligned with Canada’s broader goals.

Key point

  • Neither the Minister nor the department are involved in approving CIB investment decisions. The CIB Board of Directors approves them.

Background

  • The Canada Infrastructure Bank (CIB) operates independently from the federal government in its day-to-day operations and investment decisions. It is governed by a Board of Directors, which is responsible for overseeing the Bank’s strategic direction, approving investments, and ensuring compliance with its legislative mandate under the Canada Infrastructure Bank Act.
  • The Minister of Housing, Infrastructure and Communities is responsible for the overall accountability of the CIB to Parliament. This includes:
    • Reviewing and recommending the approval of the CIB’s corporate plans;
    • Recommending appointments to the Board of Directors and CEO, subject to Governor in Council approval; and
    • Issuing policy direction, if necessary, to ensure alignment with broader government priorities.
  • The CIB’s governance structure is designed to balance independence in investment decision-making with appropriate public oversight and transparency. The Bank publishes information about its investments and performance on its website and through its annual reports.

Canada Infrastructure Bank Mandate and Value

Issue / question

How is the Canada Infrastructure Bank delivering value for Canadians?

Suggested response

  • This government is committed to making bold investments in nation-building infrastructure on a scale not seen in generations.
  • The Canada Infrastructure Bank (CIB) supports projects that help meet Canadians’ urgent needs in trade, housing, clean energy and northern infrastructure. Investing in revenue-generating projects and attracting private capital will ensure the CIB remains a vital driver of Canada’s future prosperity.
  • The CIB supports complex projects by working with all orders of government, Indigenous communities and private sector partners.

Key point

  • The CIB has deployed $16.8 billion in capital in 102 projects with a total capital cost of $49.7 billion

Background

  • The Canada Infrastructure Bank (CIB) was established in 2017 to work with stakeholders across Canada to attract investment from private and institutional investors in revenue-generating infrastructure projects that are in the public interest, such as those that support economic growth, trade, and Canada’s housing supply.
    • It was mandated to invest $35 billion, 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.
    • It uses financial instruments including loans, equity, and, where appropriate, loan guarantees to deliver federal support to projects in the public interest to make them commercially viable and crowd-in private investment.
  • At present, the CIB has been investing in five priority sectors with the following targets: Public Transit ($5 billion), Green Infrastructure ($10 billion), Trade and Transportation ($5 billion), Broadband ($3 billion), and Clean Power ($10 billion). Across these priority sectors, the CIB has invested $1.1 billion as of March 31, 2025, in projects in partnership with and for the benefit of Indigenous communities, surpassing the original target of $1 billion set by the Government of Canada.
  • The Bank is also investing in cross-cutting initiatives to support enabling infrastructure for housing (e.g., water and wastewater) and critical minerals.
  • The CIB also plays an important advisory role. It helps build capacity and structure complex projects to support all levels of government in Canada in advancing their goals, particularly around projects that are bankable, and appropriate for attracting private investment and risk transfer.
  • As of June 30, 2025:
    • 102 investments have reached financial close, seven are completed, and 71 are in active construction;
    • CIB’s approved investments of $16.8 billion have attracted more than $19.5 billion in private and institutional capital; and
    • CIB’s approved investments are in projects with a total capital cost of $49.7 billion.

Parliamentary Budget Officer Analysis of the Canada Infrastructure Bank

Issue / question

In July 2025, the Parliamentary Budget Officer published an analysis that suggested the Canada Infrastructure Bank was not on track to meet its investment targets and was not attracting as much private capital as expected. Is the Bank struggling to deliver on its mandate?

Suggested response

  • The Canada Infrastructure Bank (CIB) plays a critical role in attracting private investment to boost Canada’s productivity and competitiveness at a lower cost to taxpayers.
  • The CIB has a proven track record of developing infrastructure projects of national importance, mobilizing investment across priority sectors, and advancing government priorities.
  • So far, it has invested in 102 projects, seven of which are completed and 71 in construction. Just last year alone, it invested in 23 projects.

Key points

  • The CIB has invested in 102 projects so far, with 23 investments made in 2024 alone.
  • The CIB has committed $16.8 billion toward $49.7 billion in total project value—supporting Canada’s competitiveness while protecting taxpayer dollars.

Background

  • On July 10, 2025, the Parliamentary Budget Officer (PBO) published a report titled “Update on the Spending Outlook of the Canada Infrastructure Bank.” The report was subsequently tabled in the House of Commons on July 16, 2025. In its report, the PBO estimates that the Canada Infrastructure Bank (CIB) will disburse $14.9 billion by 2027-28 compared to its $35 billion capital allocation. The report also discusses the percentage of the CIB’s funding from public versus private partners.
  • The 11-year reference in the 2018 long-term infrastructure plan reflected a planning horizon within the government’s fiscal framework when the CIB was originally created—not a formal deadline for the CIB to allocate or disburse its capital. The government views the CIB as a long-term institution, with a mandate that extends well beyond the initial Investing in Canada Plan timeframe.
  • The PBO’s report estimates actual cash disbursements, which are paid out over several years as projects progress through various milestones. Disbursements reflect the pace at which infrastructure projects are built rather than the Bank’s ability to commit funds, which happens prior to disbursements. Issuing funds progressively over time for large infrastructure projects aligns with standard industry practices, protects the CIB’s investment, and demonstrates the CIB’s prudent stewardship of taxpayer money.
  • Grants and contributions programs are measured on their capacity to disburse their funding allocation within a certain timeline; the Bank is not a grant program. Rather than spending public dollars outright, the CIB provides repayable financing that is recovered over time and reinvested into future infrastructure projects. This creates a sustainable funding cycle that supports long-term economic growth while maintaining fiscal discipline. With that said, there is no legislated end-date for the deployment of the CIB’s $35 billion capitalization. The Bank operates under a demand-driven, investment-based model, which differs from traditional grant funding.
  • The PBO’s report states that since the CIB’s creation, two-thirds of partner funding for CIB projects has come from public sector partners. However, the report also highlights a recent shift in the CIB’s funding sources, with 48% of total partner funds coming from private sector entities and publicly traded companies from 2022-23 to 2024-25. This reflects the CIB’s increasing ability to attract private capital. For instance, in 2024-25, the CIB lending ratio—calculated as private and institutional capital as a percentage of project cost (net of grants, for new financial closes)—was 54%.
  • Of note, the PBO and the CIB categorize private and public partners differently. The PBO defines public and private entities based on Statistics Canada’s Public Sector Universe. In contrast, the CIB defines public sponsors as federal, provincial, territorial and municipal governments, and Indigenous entities, and private sponsors as entities that are not controlled by any level of government and do not have recourse to general tax revenues for losses.
  • The PBO’s report acknowledged that its findings assumed that the CIB would consistently advance projects through the various phases at the same pace. However, both the size of projects and the rate at which they progress can vary over time, which impacts the rate of financial closes and disbursements. Additionally, macroeconomic factors that may inhibit infrastructure investment could also create opportunities for the CIB to support projects and attract private and institutional capital. In the past year alone, it committed financing to 23 new projects, a clear acceleration in its pace of investment. The Bank anticipates sustaining or further increasing this level of investment over the next five years.
  • The CIB continues to make strategic investments in projects that align with national priorities and that would not proceed without its involvement—unlocking private capital, reducing emissions, and creating jobs and prosperity across the country. By crowding in private and institutional capital to invest in Canadian infrastructure and offering repayable loans, the CIB establishes a fiscally sustainable model that delivers lasting value for Canadians. Notably, during the second half of 2024-25, returns from CIB investments have fully covered operating costs. This demonstrates the CIB’s gradual transition into a self-sustaining organization.

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