Canada Infrastructure Bank (CIB) announced an investment of up to CAD 2 billion (US$ 1.49 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.

The project involves on-corridor works, operation, maintenance and management of the GO Transit Rail network. This includes the operation of train services, maintenance of rolling stock, construction of maintenance and storage facilities and reconstruction works at Union Station in Toronto. The operation and maintenance period is 30 years.

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. Recently 4 teams, including EnTransit, MTR Kiewit Partners, ONcore Transit and ONxpress Transportation Partners, were prequalified to bid on the On-Corridor Works project.

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.  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.