Canada Infrastructure Bank commits up to $2B to GO Train expansion

CIB announces $2 billion to expand GO transit (CNW Group/Canada Infrastructure Bank)

The Canada Infrastructure Bank (CIB) likes trains.

The crown corporation created to invest up to $35 billion into new revenue-generating infrastructure across the country has 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.

This marks CIB’s second investment, with the only previous commitment being its $1.28 billion backing of Montreal’s Réseau express métropolitain (REM) light rail project.

CIB’s investment in Ontario is designed to 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.

While these initial investments have been committed to public transit, the CIB is focused on transformational projects that are in the public interest, with also include trade and transportation, green infrastructure as well as broadband.