Canada Infrastructure Bank

Canada Infrastructure Bank

Native name	Banque de l'infrastructure du Canada
Company type	Crown corporation
Founded	June 22, 2017 (2017-06-22)
Key people	Pierre Lavallée, President & CEO
Net income	$CDN 3,316, 000  (September 30, 2019)
Total assets	$CDN 796,408, 000 (September 30, 2019)
Total equity	$CDN 796,408, 000 (September 30, 2019)
Owner	Government of Canada
Number of employees	46 (November 2019)
Website	cib-bic.ca

The Canada Infrastructure Bank (Template:Lang-fr) (CIB) is a federal Crown Corporation of Canada tasked with financially supporting revenue-generating infrastructure projects that are in the public interest through public-private partnerships.

History

The Canada Infrastructure Bank was announced by Finance Minister Bill Morneau during the 2016 fall economic update, in response to a campaign promise made by the Liberal Party during the 2015 Canadian federal election. It was officially established in June 2017 when the Canada Infrastructure Bank Act received royal assent. The bank was established in response to a market gap between government-funded and privately funded infrastructure projects.

Mandate

The 2017 Canada Infrastructure Bank Act sets out the corporation's mandate to invest, and seek to attract investment from private-sector investors and institutional investors, in revenue-generating infrastructure projects that are in the public interest.

The CIB uses financial instruments including loans, equity, and, where appropriate, loan guarantees to deliver federal support to projects to make them commercially viable. The CIB will provide financing and investment using a combination of these instruments depending on a project's unique characteristics. The model is to crowd in and mobilize private and institutional capital and to relate financial returns to project usage and revenue risk.

The Government of Canada sets the high-level policy priorities for the CIB, including:

• projects that support the government's current priorities to invest in public transit, trade and transportation, and green infrastructure;
• projects that contribute to the objectives of the Investing in Canada Plan and the Pan-Canadian Framework on Clean Growth and Climate Change; and
• projects generally eligible for cost sharing under federal infrastructure support programs.

Consideration is given to potential projects appropriate for the new partnership- and revenue-based funding model.

The CIB reports to Parliament through the Minister of Infrastructure and Communities.

Funding

The Canadian Parliament has authorized appropriations of $CDN35 billion covering the eleven-year period that ends in FY 2027-2028. This includes $CDN15 billion for the fiscal framework. This financial support is to fulfill a need to "mobilize private investment" for projects that would otherwise have no private investment. This may be in the form of "financial instruments" or "loans, equity investments, and loan guarantees."

Board of Directors

Pierre Lavallée is the President and Chief Financial Officer (CFO) and Chief Executive Officer (CEO), Annie Ropar is the Chief Administrative Officer (CAO) and Michael Sabia in Chair of the Board of Directors. Most of the board members are investors who have had their careers in major banks or pension funds. More than half of members have ties to the Liberal Party, including former Calgary mayor and past Liberal donor Dave Bronconnier.

Projects

Mapleton, Ontario waste and wastewater infrastructure project (2019-)

On 15 July 2019 the BIC made a $CDN 20 million investment commitment township of Mapleton, Ontario's water and wastewater project. The financing comes in the form of a "standardized debt financing package" to "attract private capital expertise". The Township of Mapleton, with a rural population of 11,000, has been seeking a consortium public-partnership to "design, build, finance, operate and maintain" a proposed 20-year project to improve and expand" the township's publicly owned water and wastewater infrastructure". BIC said that this project is a potential pilot and model which could demonstrate to Canadian municipalities—including smaller communities—with water and wastewater challenges, how BIC can assist them in attracting private sector capital" for financing to improve publicly owned water and wastewater systems. While the water and waste-water systems will continue to be publicly owned, concerns have been raised by organizations, such as the Canadian Union of Public Employees (CUPE), that there is a risk that smaller communities may become locked into lengthy agreements with private financiers that result in higher user fees for water and wastewater services.

Name	Partner	Location	Sector	Investment
Réseau express métropolitain (REM)	CDPQ Infra, Province of Quebec	Montreal, Quebec	Public Transit	$1.28 billion (15-year senior secured loan)
GO Expansion - On Corridor	Infrastructure Ontario and Metrolinx	Greater Toronto and Hamilton Area, Ontario	Public Transit	Up to $2 billion
Via Rail High Frequency Rail Project	Via Rail and Transport Canada	Ontario and Quebec	Public Transit	$55 million
Mapleton Water and Wastewater	Township of Mapleton	Mapleton, Ontario	Green Infrastructure	Up to $20 million
Lulu Island District Energy	City of Richmond, Lulu Island Energy Company	Richmond, British Columbia	Green Infrastructure	Memorandum of Understanding
Contrecoeur Port Terminal	Montreal Port Authority	Montreal, Quebec	Trade and Transportation	Up to $300 million
Taltson Hydroelectricity Expansion	Government of Northwest Territories	Northwest Territories	Green Infrastructure	Advisory Services
Pirate Harbour Wind Farm	Port Hawkesbury Paper	Point Tupper, Nova Scotia	Green Infrastructure	Memorandum of Understanding
Kivalliq Hydro-Fibre Link	Kivalliq Inuit Association, Sakku Investment Corporation, Anbaric Development Partners and Ontario Teachers' Pension Plan	Nunavut and Manitoba	Green and Broadband Infrastructure	Memorandum of Understanding

Acts

The CIB was established by the Canada Infrastructure Bank Act (CIB Act), an Act of Parliament on June 22, 2017.