$2 billion announced for expansion of GO Transit
Canada Infrastructure Bank, Infrastructure Ontario and Metrolinx partner to invest in transit
Canada Infrastructure Bank (CIB) announced 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 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," said Pierre Lavallée, President and CEO, Canada Infrastructure Bank. "We look forward to bringing together the public and the private sectors in an innovative way. Our investment will enhance public transit, reduce greenhouse gas emissions and generate economic opportunities for Canadians."
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.
"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," said 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," noted Ehren Cory, President and CEO, Infrastructure Ontario.
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.
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.