TORONTO, May 30, 2019 /CNW/ – Canada Infrastructure Bank (CIB) announced today an investment of up to $2 billion in financing in Ontario’sGO 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.
- 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.
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