Frequently Asked Questions
What is the Canada Infrastructure Bank?
The Canada Infrastructure Bank (CIB) is a Crown corporation established in June 2017. We work to invest in infrastructure projects that are in the public interest. The CIB will leverage $35 billion to attract private capital and co-invest with private-sector and institutional investors in new, revenue-generating infrastructure.
The CIB is a new tool that will contribute to added investment in infrastructure, new approaches to projects, and modernized ways for governments and investors to partner using new models.
Will the CIB partner with other governments?
The CIB collaborates with provincial, territorial, municipal and Indigenous partners, as well as the federal government, regarding their project priorities that could benefit from CIB participation. The CIB will work to understand the needs identified by provinces and territories in their Infrastructure Plans, how they could benefit from CIB investment, if CIB can contribute expertise or knowledge to developing projects, and what potential there is for private sector investment. The CIB will work with public sector partners to ensure investments are in the public interest.
Projects supported by the CIB should respect all applicable federal, provincial, territorial and municipal laws and regulations, including any applicable environmental impact assessments. Furthermore, whether infrastructure projects should have a business model including a revenue model will ultimately be a decision for the government partner responsible for the project.
Are there regional allocations for CIB investments?
As the CIB is an optional tool available to all governments there are no regional allocations or quotas. The CIB will assess projects on their own merits and be open to projects from across the country. The CIB will work with partner governments from coast to coast to coast to help them determine the most efficient way to deliver infrastructure, whether it be through co-investments alongside the CIB, public-private partnerships or other traditional forms of investment.
When assessing potential projects located in rural and northern communities, the CIB will take into account the specific challenges of developing infrastructure in these regions. The CIB will also consider how it can contribute to the Government’s commitment to achieve reconciliation with Indigenous people through renewed nation-to-nation, government-to-government, and Inuit-Crown relationships.
What does Canada Infrastructure Bank do?
Our mandate is to invest up to $35 billion of capital into new infrastructure projects alongside private and institutional investors. Priority areas for the CIB are public transit, trade and transportation, and green infrastructure. The CIB is focused on making investments, providing advisory expertise, and building knowledge as a centre of excellence about infrastructure investments.
What are the benefits of the CIB?
The CIB makes investments that help get more infrastructure built that benefits Canadians.
The CIB’s investments leverage partnership with the private sector to advance projects that might not otherwise be built or would not be built with risk transfer to and capital from the private sector. By injecting capital from the private sector into infrastructure projects that provide public benefits, governments are able to allocate scarce government capital to other public sector investment priorities.
In addition, CIB collaborates with public-sector owners and sponsors and private-sector investors to provide advisory expertise that can advance the development of projects. The CIB will have specialized commercial expertise regarding infrastructure investments.
The CIB aspires to be a centre of expertise for knowledge and will develop data and information regarding best practices for infrastructure investments.
Why does Canada need a new model for infrastructure investing?
Canada has developed a world-leading public-private partnership (PPP) market, under which government funds the majority of the project costs. Risk transfer to the private sector under this model is effective, particularly related to the construction phase to ensure projects are delivered on-time and on-budget.
In order to further reduce the infrastructure gap, Canada has the opportunity to evolve the approaches to financing and risk transfer in large and complex projects. As well, by developing new investment models that include usage-based and other revenue structures, there is potential to reduce the dependence on constrained government budgets, expand private sector investment and increase innovation and risk transfer.
New models with the CIB are intended to accelerate delivery of more, high-quality infrastructure for Canadians.
What is the difference between Canada Infrastructure Bank model and public-private partnerships (P3s)?
Successful P3s have shown that private investors bring innovation in the planning and design of a project and discipline in budgeting, scheduling and delivering an asset.
We expect that private-sector investors will go one step further in projects supported by Canada Infrastructure Bank, and assume additional risks relating to infrastructure usage or revenue.
Why would governments and private-sector investors consider working with the Canada Infrastructure Bank?
For federal, provincial, territorial, municipal governments, and their agencies, and First Nations, the CIB is another option to help structure and finance new infrastructure projects. Our experts will provide significant commercial capacity and will work to advance investments that are in the public interest. The CIB’s expertise can level the playing field and support partnerships between governments and investors. The Canada Infrastructure Bank does not replace existing infrastructure funding models, such as grants and PPPs, but seeks to complement and expand these models.
For private-sector proponents and investors, our flexible capital support will create more investment opportunities in Canadian infrastructure. We co-invest with private and institutional investors to fill a gap in a project’s capital structure. We will also provide a framework to assist private-sector investors submit unsolicited proposals to solve infrastructure needs.
What is the process for submitting a project to Canada Infrastructure Bank for consideration?
Federal, provincial, territorial, municipal governments, and their agencies, and First Nations, as well as the private sector, can propose potential projects for our investment consideration at any time. The CIB is actively engaging with public sector owners and sponsors across Canada to understand project opportunities. We are open to receive and review projects at any time directly to our Investments and Project Development teams who can be reached at firstname.lastname@example.org.
What are the public interest requirements for the CIB to support a project?
Projects must satisfy public interest requirements to ensure alignment with government policies and priorities. For example, projects will typically fall within one of our priority areas: public transit, trade and transportation and green infrastructure. In addition, projects must also be in line with the priorities of the sponsor such as the province or territory, municipality or First Nation. It will be important for a project with CIB participation to support conditions that foster economic growth or by contributing to the sustainability of infrastructure in Canada.
How will the CIB conduct commercial due diligence?
Any project that receives CIB investment will have to satisfy all commercial due diligence by the CIB on financing, structuring, risk transfer and more. We will analyse critical information for each project such as the business case, risk allocation, attractiveness to private and institutional investors, the market testing and optimization of costs including competitive tension, deliverability including procurement strategy.
How are investment decisions made?
We will undertake extensive due diligence to ensure project proposals meet public interest and commercial deal structure (or bankability) requirements.
The CIB will collaborate with Infrastructure Canada regarding public interest requirements and to ensure alignment with high-level policy priorities.
The CIB will conduct commercial due diligence and any investment decisions will have to be confirmed by a management investment committee and approved by the Investment Committee of the Board of Directors.
How does Canada Infrastructure Bank invest in projects?
We have a wide range of financial instruments at our disposal, including senior debt, subordinated debt, preferred equity, equity and structured risk positions, depending upon the needs of a specific project or business case. Infrastructure projects are very long term, and each is unique and complex. The specific financial instruments used will depend on what makes the most sense for any given project.
What risks is Canada Infrastructure Bank willing to take?
Canada Infrastructure Bank expects that private sector investors and developers will have a significant responsibility for managing risks in projects. CIB will not take-on risks which the private sector is best positioned to manage. In cases where certain risks (such as demand or usage risk) are too great for private investors to accept in full, we will structure the CIB’s investment to align with the risk profile of the project. CIB will seek an alignment of interests and sharing of risks with private-sector capital. The CIB will have flexibility on the level of risk transferred to the private sector and the conditions that maximize private capital in a project. The CIB will tailor risk transfer and investment to match the unique requirements of each project, and can accept below-market returns.
Will CIB investments attract private investment?
We seek to invest the minimum capital necessary to attract private capital and transfer risk to the private sector. We will fill the gap in financing that can exist in projects. We will not crowd out private investment by providing capital that would otherwise be available in commercial markets.
There is a real appetite among private and institutional investors to invest in new infrastructure projects with a reasonable risk-reward equation.
Is Canada Infrastructure Bank a procurement agency?
The CIB is primarily an investor, not a procurement agent. We will work closely with governments, their procurement agencies and advisors and private-sector investors to structure projects and investments that meet our objectives.
What is the advisory role of Canada Infrastructure Bank?
Our Project Development and Investment teams will work with sponsors from an early stage to determine the viability for project investment. The teams can begin discussions with sponsors on a purely advisory basis, helping to advance a proposal to the stage where it is ready for detailed financial structuring and consideration for potential CIB investment.
What is the Inventory of Canadian Infrastructure Projects?
An inventory of Canadian infrastructure projects will be developed to provide broad exposure to potential projects to attract collaboration and partnerships. There are many steps to take in compiling an inventory, particularly engagement with public sector owners and sponsors. Outreach to provincial, territorial, municipal and indigenous leaders is underway in order to understand future transformational projects that could be part of an inventory.
What data and information will the CIB manage?
The CIB will work collaboratively to gather information on infrastructure in order to promote better decision-making. This will include developing a good understanding of Canadian and international best practices as it relates to the planning, development, financing and management of infrastructure.
How is Canada Infrastructure Bank governed?
We have a professional, independent Board of Directors that oversees management and approves investments. The board has an exceptional range of professional skills, infrastructure expertise and investment experience.
As a federal Crown corporation, the CIB reports to Parliament through the Minister of Infrastructure and Communities. The Government of Canada sets our overall policy direction and high-level investment priorities by approving our annual corporate plan.
How is Canada Infrastructure Bank accountable?
As a federal Crown corporation Canada Infrastructure Bank is accountable to The Government of Canada and Canadians through the Canada Infrastructure Bank Act and the Financial Administration Act.
The CIB develops an annual corporate plan, with operating and capital budgets, for approval by the Government of Canada. Summaries of the corporate plan and our annual reports are tabled in Parliament and posted on this website.
The CIB also hosts an annual public meeting to be transparent, accountable and accessible and to increase the public’s understanding of the Crown corporation’s operations.
In addition, the Auditor General of Canada and an independent private-sector auditor are joint auditors of Canada Infrastructure Bank.
Where do I learn more about the Canada Infrastructure Bank Act?
The Canada Infrastructure Bank Act, the legislation that established the CIB, was part of Bill C-44, Budget Implementation Act, 2017, which received Royal Assent on June 22, 2017. The full text of The Canada Infrastructure Bank Act is available on the Government of Canada’s Justice Laws Website.