Canada Infrastructure Bank to invest £1.17bn to expand GO Transit in Ontario
June 05, 2019 – Canada Infrastructure Bank (CIB) has agreed to invest CAD2bn (£1.17bn) as financing for Ontario’s GO Expansion – On Corridor project.
The project will extend frequent two-way all-day service across the Greater Toronto and Hamilton Area and is claimed to be the largest infrastructure project undertaken by the Government of Ontario.
For the project, CIB has partnered with Infrastructure Ontario and Metrolinx and is expected to improve services for commuters between Greater Toronto and Hamilton Area.
In this project, CIB’s role is that of financing partner and advisor to Metrolinx and Infrastructure Ontario. The two companies are the co-sponsors, leading the competitive procurement process including the announcement of preferred proponent.
CIB will provide the financing in the form of debt financing package to all proponents during the request for proposals open period. It will finalise a credit agreement with the preferred proponent selected by the two companies, when the project secures financing.
The project includes designing, building, financing integrating, maintaining, rehabilitating or renewing the railway corridor including the civil infrastructure, tracks, systems, rolling stock, signalling.
It also includes timetable planning, train control and dispatch for all operators across the GO network.
Other works include refurbishment, maintenance, servicing and cleaning of all rolling stock and procurement of new rolling stock and reconstruction of Union Station track and platforms along with maintaining compliance with Metrolinx safety, security and emergency management policies.
Canada Infrastructure Bank president and CEO Pierre Lavallée said: “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.”
Metrolinx president and CEO Phil Verster said: “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.”
The latest financing represents CIB’s second transit investment. Previously, CIB agreed to invest CAD1.28bn (£750m) in Montreal’s Réseau express métropolitain (REM) project.