Wednesday, the Senate passed legislation that would allow for the creation of the Infrastructure Bank. According to the bill passed, this corporation’s purpose is to “invest in, and seek to attract private sector and institutional investments to, revenue-generating infrastructure projects.”
Bill C-44 allows government to implement certain provisions to the federal budget, including making room for the much-talked-about Infrastructure Bank. The bank will help structure proposals and negotiate agreements for infrastructure projects across the country. They will receive unsolicited proposals from the private sector or institutional investors, provide advice to all levels of government, and monitor the state of infrastructure in Canada.
As Bruce McCuaig, Executive Advisor of the Privy Council, said Tuesday at a seminar on alternative financing, “If we were to build all infrastructure on public balance sheets, we wouldn’t be able to get there.”
The seminar McCuaig spoke at Tuesday was hosted by the Transit Alliance, a non-political organization for those who work in the transit and infrastructure industry, students, or those interested in transit and transit planning in cities across Southern Ontario. Much of the discussion centered around whether or not the Infrastructure Bank is going to be useful for municipalities.
The biggest challenge is that Bill C-44 only outlines the recommendations and the broad powers the Infrastructure Bank holds. There are still quite a few details to work out, for example how the Infrastructure Bank will balance public and private interests. The general consensus is that the bank will provide opportunities for municipalities, but that it should focus on projects that are having a harder time finding funding.
As the bank starts to develop and grow, more information will become available.
What do you think of the Infrastructure Bank? Let us know in the comments below!