Language selection

Government of Canada / Gouvernement du Canada

Search

Canada Infrastructure Bank

Infrastructure

  1. Canada Infrastructure Bank Operations
  2. Role of McKinsey and the Government of Canada in the Creation of the CIB
  3. Lake Erie Connector Project

Canada Infrastructure Bank Operations

Issue / question

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

Suggested response

  • The Canada Infrastructure Bank’s (CIB) independent Board of Directors ensures that spending aligns with the Bank’s strategic objectives and delivers value for money.
  • Its compensation framework aligns with best practices of both the public and private sectors across Canada, helping it attract and retain the specialized talent required to structure complex infrastructure deals.
  • As with all federal organizations, the CIB is subject to the Privacy Act and the Access to Information Act. As such, personal information, including individual compensation, is protected under federal law.

Key point

  • The CIB’s operating expenses in 2024-25 represented only 0.4% of its committed capital of $16 billion.

Background

  • The Canada Infrastructure Bank (CIB)’s 2023-24 operating expenses were $57.5 million, including $38.7 million in compensation. This is compared to $55.3 million in 2023-24, of which $37.5 million was for compensation. In 2024-25, the CIB earned $61.1 million in revenue on its investments, compared to $59.2 million in 2023-24, which help offset the cost of its operating expenses.
  • As of March 31, 2025, the CIB had 149 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.

CIB Compensation

  • The CIB’s compensation framework 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. The CEO’s base salary is fixed by the Governor in Council on the recommendation of the Board at $553,400 - $651,000.
  • CIB executives are paid a performance-based incentive award which ranges from 40% to 110% of their 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. As of March 31, 2025, the median base salary for CIB executives other than the CEO was $293,550.
  • 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.
  • In 2024-25, the CIB paid $38.7 million in compensation to 149 employees, including $23.9 million in base salary, $9.3 million in annual incentive awards, and $0.8 million in deferred long-term payments to senior-level employees, with the balance going toward benefits and other items.

Role of McKinsey and the Government of Canada in the Creation of the CIB

Issue / question

What was the role of McKinsey & Company in the creation of the Canada Infrastructure Bank?

Suggested response

  • McKinsey & Company was involved in the early days of the Canada Infrastructure Bank (CIB), providing advice to the government and later to the Bank itself as it was being set up.
  • The CIB has had no involvement with McKinsey & Company since the appointment of Ehren Cory as Chief Executive Officer of the CIB in November 2020 for a term of five years.

Key point

  • McKinsey & Company provided consulting services only during the initial establishment of the CIB.

Background

  • The Minister of Finance established the Advisory Council on Economic Growth in March 2016, which fleshed out relevant features for an infrastructure bank, including:
    • use institutional capital to gain greater impact and act as a centre of expertise to structure and deliver projects;
    • have an independent governance structure to attract capital and talent;
    • be capitalized with at least $40 billion over 10 years by the federal government;
    • work in partnership with provincial and municipal infrastructure agencies.
  • The Chair of the Advisory Council on Economic Growth was Dominic Barton, who at the time was the Global Managing Director of McKinsey & Company. Also a member of the Council was Michael Sabia, who became Chair of the Canada Infrastructure Bank (CIB) from April 2020 to December 2020.
  • Prior to being appointed CEO of the CIB on November 9, 2020, Ehren Cory was President and CEO of Infrastructure Ontario, a Provincial Crown Agency responsible for financing, building, and enhancing the value of the province’s infrastructure and real estate assets. Prior to joining Infrastructure Ontario, Ehren Cory worked at McKinsey & Company between 2001 and 2012.
  • In addition to Ehren Cory, three current CIB employees previously worked at McKinsey & Company: Steve Robins, Head of Strategy, as well as Ehren Cory’s executive assistant, both of whom were hired by Ehren Cory and worked with him at McKinsey and at Infrastructure Ontario; and Aneil Jaswal, Director, Strategies Sector, who was hired by responding to an online job posting.
  • The Government of Canada officially announced the creation of the CIB in the 2016 Fall Economic Statement. The proposed CIB would work with provinces, territories, and municipalities to make public infrastructure funding stretch further. The Bank would be responsible for investing at least $35 billion in large infrastructure projects through direct investments, loans, loan guarantees and equity investments.
  • The Standing Committee on Transport, Infrastructure and Communities (TRAN) report “The Role of McKinsey & Company in the Creation and Beginnings of the Canada Infrastructure Bank,” was originally tabled in the House of Commons on November 26, 2024, including a request for a Government Response (GR). TRAN’s GR request died on the Order Paper with the dissolution of Parliament in March 2025. Following resumption of Parliament, TRAN re-tabled this report in the House on June 20, 2025, along with a request for a GR.

Lake Erie Connector Project

Issue / question

What was the Canada Infrastructure Bank’s role in the Lake Erie Connector project?

Suggested response

  • No funding has been provided by the Canada Infrastructure Bank (CIB) for the Lake Erie Connector project.
  • In April 2021, the CIB committed to financing approximately one-third of the costs for the $1.7 billion Lake Erie Connector project. However, the original project proponent opted to cease negotiations in July 2022, before a deal was finalized.
  • The CIB spent approximately $900,000 on legal services and engineering expertise to conduct its initial due diligence for this project, which is consistent with industry norms for this type of financial review.

Key points

  • The CIB’s spending on due diligence was consistent with industry practice.
  • No funds were paid to the project proponent.

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 jobs, drive more than $300 million in economic activity, and boost Ontario’s gross domestic product by $8.8 billion.
  • On April 13, 2021, the Canada Infrastructure Bank (CIB) announced an investment commitment of up to $655 million in the Lake Erie Connector project, with ITC Investment Holdings (a subsidiary of Fortis Inc.) and private-sector lenders funding the balance of the $1.7 billion total costs.
  • On July 28, 2022, Fortis Inc. announced it had suspended development activities and commercial negotiations related to the Lake Erie Connector project, citing unviable macroeconomic conditions.
  • Commercial negotiations related to the Lake Erie Connector were suspended before the project reached financial close, and no CIB financing was provided as a result.
  • The CIB incurred $875,332 in legal and technical advisory expenses to conduct due diligence on the 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.
  • The Standing Committee on Transport, Infrastructure and Communities (TRAN) studied the CIB’s Involvement in the Lake Erie Connector Project during the 44th session of Parliament over three meetings.
  • CIB CEO Ehren Cory, appeared at TRAN on April 9, 2024, as part of the study and stated that the rights to the project had been purchased by a new proponent, NextEra Energy Transmission, and that the CIB is exploring opportunities with them. NextEra had previously opposed a Hydro Québec project linking the province to New England.
  • TRAN tabled its report containing five recommendations in October 2024, as follows:
    • Considering that the Committee still remains concerned about the waste, inefficiency, and lack of transparency at the CIB, the Government of Canada (GC) act on the single recommendation of the Committee in its third report and abolish the CIB.
    • That the GC prevent the CIB from using preferential public financing to “de-risk” wealthy corporations’ private-sector projects in cases in which such projects have circumstantial, speculative, or minimal benefits to the Canadian public.
    • That the CIB refrain from using taxpayers' money to finance projects like the Lake Erie Connector, which are primarily for the benefit of foreign companies.
    • That the CIB refrain from partnering with foreign companies that unfairly attack Quebec and Canadian companies, as NextEra Energy Resources did with Hydro Québec.
    • That the GC facilitate cooperation between the Quebec and Ontario provincial governments to work towards integrating their respective electricity grids.
  • TRAN’s report included a request for a Government Response (GR), however, the request died on the Order Paper with the dissolution of Parliament in March 2025. Following the resumption of Parliament, TRAN re-tabled its report in the House of Commons on June 20, 2025, along with a request for a GR.

Page details

Date modified: