Canada Infrastructure Bank to be launched by the Feds
Following up on recommendations by the Advisory Council on Economic Growth, the federal government is launching the new Canada Infrastructure Bank to provide innovative funding and financing for infrastructure projects and help more projects get built in Canada. The Canada Infrastructure Bank will be responsible for investing at least $35 billion from the federal government into large infrastructure projects that contribute to economic growth through loans, loan guarantees and equity investments. Part of this amount—$15 billion—will be sourced from the announced funding for public transit, green infrastructure, social infrastructure, trade and transportation, and rural and northern communities. An additional $20 billion in capital will be available to the Canada Infrastructure Bank for investments which will result in the Bank holding assets—in the form of equity or debt. This $20 billion will therefore not result in a fiscal impact for the government.
The Canada Infrastructure Bank will provide better results for middle class Canadians by doing things differently. By establishing a new organization capable of working with the private sector where it makes sense, public dollars will go farther and be used smarter, leading to better projects that create the good, well-paying jobs needed to grow the middle class now, and strengthen Canada’s economy over the long term.
Learn more here.