Canada Infrastructure Bank Announces $2 Billion to Expand GO Transit

Canada Infrastructure Bank Announces $2 Billion to Expand GO Transit

Canada Infrastructure Bank, Infrastructure Ontario and Metrolinx partner to invest in transit

Disponible en français                                                                                                 May 30, 2019

TORONTO – Canada Infrastructure Bank (CIB) announced today an investment of up to $2 billion in financing in Ontario’s GO Expansion – On Corridor project. CIB’s partnership with Infrastructure Ontario and Metrolinx will add to the transformation of the GO rail network in the Greater Toronto and Hamilton Area and significantly improve service for commuters.

CIB’s investment will improve the cost of financing and attract private capital while ensuring appropriate risk transfer to the private sector.

The CIB’s role in GO Expansion is a financing partner and advisor to Metrolinx and Infrastructure Ontario. Infrastructure Ontario and Metrolinx are the co-sponsors and are leading the competitive procurement process including announcing the preferred proponent.

CIB financing will be offered in the form of a standardized debt financing package to all proponents during the request for proposals open period. CIB will finalize a credit agreement with the preferred proponent selected by Infrastructure Ontario and Metrolinx when the project reaches financial close.

Quick Facts:

  • The CIB was created by the Government of Canada to strategically invest $35 billion of federal funding to attract private sector investment into revenue-generating infrastructure projects that are in the public interest. The CIB’s partnerships and investments will help infrastructure projects across Canada move forward.
  • This is the second transit investment by CIB following the recently announced $1.28 billion commitment to Montreal’s Réseau express métropolitain (REM) project.
  • In the first year of its 10-year investment period, CIB has invested almost 10% of its total capital. CIB is poised to achieve its minimum of $5 billion in urban transit investments.
  • CIB is focused on transformational projects that are in the public interest.
  • Public transit, trade and transportation, green infrastructure as well as broadband are the priority sectors for investment.

Quotes:

“CIB is proud to take part in a transformational project that will remarkably improve the quality of life for commuters. We’re excited to partner with Infrastructure Ontario and Metrolinx. We look forward to bringing together the public and the private sectors in an innovative way. Our investment will enhance public transit, reduce green house gas emissions and generate economic opportunities for Canadians.”
– Pierre Lavallée, President and CEO, Canada Infrastructure Bank

“The GO Expansion project is an extraordinary initiative and Canada Infrastructure Bank’s investment will help us transform the region to realize long-term benefits for our customers. This is an opportunity to benefit from CIB’s low-cost financing and I hope it’s the first of many investment opportunities with CIB.”
– Phil Verster, President and CEO, Metrolinx 

“This project will be the largest infrastructure project in Canada. This partnership will ultimately reduce the project’s overall cost while continuing to protect taxpayers.”
– Ehren Cory, President and CEO, Infrastructure Ontario

Learn More:

Canada Infrastructure Bank
Infrastructure Ontario
Metrolinx
GO Expansion – On Corridor project page

Contacts:

Félix Corriveau
Canada Infrastructure Bank
fcorriveau@cib-bic.ca
416-550-0900

Terence Foran
Canada Infrastructure Bank
tforan@cib-bic.ca
416-847-7743

Disponible en français.

Canada Infrastructure Bank – Backgrounder

Canada Infrastructure Bank (CIB) is a Crown corporation created to invest up to $35 billion into new, revenue-generating infrastructure alongside private and institutional investors and provide advisory services to potential project sponsors. By engaging the expertise and capital of the private sector, we will help provide new infrastructure for Canadians.

CIB is working closely with provincial, territorial, municipal and Indigenous governments and the Government of Canada to implement their infrastructure priorities in cooperation with the private sector.

Our priority areas are public transit, trade and transportation, and green infrastructure, as well as broadband.

We invest in infrastructure in the public interest. Projects will need to be bankable, satisfy commercial due diligence, include private sector investment and generate revenue, among other requirements.

Every investment is tailored and structured to ensure public dollars go as far as possible, and the risks, rewards and costs are appropriately shared among parties.

CIB is an innovative response to the limited capacity of governments to finance infrastructure projects. As a made-in-Canada solution to transform the way infrastructure is planned, financed and delivered, CIB aims to attract the required capital to build new projects that benefit Canadians across the country.

 

GO Expansion – On Corridor

CIB is investing up to $2 billion in the GO Expansion – On Corridor project. Through its partnership with Metrolinx and Infrastructure Ontario, CIB is proud to take part in a transformational project that will allow Greater Toronto and Hamilton Area commuters to get to work faster and return home again sooner. Our investment in the project will improve quality of life of commuters.

Metrolinx and Infrastructure Ontario are co-sponsors and responsible for the competitive procurement process, selecting the winning bidder and delivery of the project.

The investment aligns with both federal and provincial mandates to improve public transit, reduce green house gas emissions, generate economic opportunities and develop new ways to tackle the infrastructure deficit.

Between CIB’s investment in the GO Expansion project in the Greater Toronto and Hamilton and its other investment in the Réseau express métropolitain in Montreal, CIB has invested almost $3.3 billion to significantly improve transit for Canadians.

CIB welcomes the support of leading industry voices for our $2 billion investment in GO rail expansion in the Greater Toronto and Hamilton area. Take a look at what they’re saying:

Toronto Region Board of Trade

“Toronto Region Board of Trade congratulates the Canada Infrastructure Bank for its second investment decision in its short history, building on its already-productive investment in the REM light rail project in Montreal,” said Jan De Silva, President & CEO, Toronto Region Board of Trade. “As a strong supporter of the concept of the Canada Infrastructure Bank and its potential to leverage new kinds of investments in major infrastructure projects, we and our big-city Chamber colleagues in the Canadian Global Cities Council can now point to two major transit-related investments in Canada’s two largest cities. Canadians in other cities and regions can be surer than ever that funding support for projects that can draw private investment will roll across the country as appropriate deals come forward.”

Ontario Chamber of Commerce

“We are pleased to see critical investments being made in our Province that will ensure commuters and businesses have access to long-term and reliable transportation. This $2 billion commitment by the CIB delivers new money for GTHA transit and will attract additional investment from the private sector that will strengthen Ontario’s economy.

C.D. Howe

“Today’s announcement fits well within the CIB legislated intent. From a public policy standpoint, the CIB provides opportunities to improve the delivery of new infrastructure projects and produce a socially beneficial result. The investment in Ontario’s GO Expansion fulfills those goals.”

Canadian Urban Transit Association

CUTA is excited to see a joint @cib_en @InfraOntario $2 billion investment in the @Metrolinx rail network.