I'd be happy to do so.
In the lengthy consultations we've had among officials of the Department of Infrastructure and the Department of Finance, and when we've looked globally, many other forms of structures that rely on loan guarantees to finance infrastructure have emerged that in Canada, given that we don't have the same level of political risk as is usually attached to using loan guarantees in other countries, would not need to be preferential or primary instruments to do what the Canada infrastructure bank is designed to do.
However, given that it has a suite of innovative tools, the government is saying that the loan guarantee tool could be, under very limited circumstances, a tool to achieve an outcome. Because, however, of the very specific contingent liabilities associated with the loan guarantee instrument, which mean that they need to be priced and the maximum exposure for auditing and accounting purposes needs to be determined, there is a separate checkback to the Minister of Finance to make sure that this is done. It is not put in the window that the infrastructure bank itself can design a project around a loan guarantee structure unless it has explicit concurrence through the department and the Minister of Finance. Those are the same parameters under which other crown corporations would use a loan guarantee.
The government is thus proposing to give the infrastructure bank equity and debt tools to use and a sufficient balance sheet that it need not resort to a loan guarantee scheme as a preferred instrument. However, given that it is designed to be a service instrument to other orders of government, if they come forward in a project structure together with the bank and in a unique circumstance think that such may be the preferred instrument, they would work through that structure and then go and make a case as to why a loan guarantee fits in that specific project structure. It will be imperative upon the bank to make sure that this tool is priced and the maximum exposure is recorded for accounting purposes. That's why we have both the Auditor General and a private sector auditor engaged with the bank.
I hope that answers your question.