Evidence of meeting #129 for Indigenous and Northern Affairs in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was project.
A recording is available from Parliament.
President and Chief Executive Officer, Canada Infrastructure Bank
Do you mean a northern strategy specifically? We have not carved out a separate northern strategy. We would look at it more on a project-by-project or groups-of-projects basis.
Edmonton Riverbend, CPC
You have $35 billion. You don't have a northern strategy. You've reannounced a project that had already been announced.
It goes back to my initial question, which is, what have you been doing from that point in time? I'm sorry to be tough on you, Mr. Lavallée. You're the face of it all, but I think there's a lot of confusion out there with many stakeholders as to where the bank fits into overall investment in Canada infrastructure.
President and Chief Executive Officer, Canada Infrastructure Bank
We have not developed a northern strategy because we do not have specific geographic allocations. We have three sectors that we're focusing on. We look at those sectors on a coast-to-coast-to-coast basis.
In terms of the activity level of the bank, making good investments—
President and Chief Executive Officer, Canada Infrastructure Bank
—takes some time.
President and Chief Executive Officer, Canada Infrastructure Bank
I'm not going to put a specific timeline or a deadline on that.
President and Chief Executive Officer, Canada Infrastructure Bank
We have, in the course of the last six months, engaged in discussions on over 50 projects, 10 of which we're actively engaged with today. The others are continuing on their path to maturity.
Edmonton Riverbend, CPC
“Actively engaged”—does that mean that they have already gone to cabinet for approval?
President and Chief Executive Officer, Canada Infrastructure Bank
Our board of directors makes the investment decisions.
NDP
Rachel Blaney NDP North Island—Powell River, BC
I thank you all for being here with us today.
I'm going to start with you as well, Mr. Lavallée.
I'm curious. Could you explain to me a little bit about how you figure out what the return on investment for the private sector is going to be? How is that negotiated?
President and Chief Executive Officer, Canada Infrastructure Bank
It's taken from the perspective of a reasonable risk-adjusted return versus other comparable projects that have taken place in the industry more broadly on a global basis.
NDP
Rachel Blaney NDP North Island—Powell River, BC
In terms of the private sector getting that return on investment, will that be made known to the public, to Canadians, to understand what part was the investment from the government, what part was the investment from private corporations, and what kind of return on investment they received?
President and Chief Executive Officer, Canada Infrastructure Bank
I can only speak to one specific example. The investment that we've made and the returns of the private investor in that situation of the REM are public and are publicly disclosed.
NDP
Rachel Blaney NDP North Island—Powell River, BC
With regard to the work that needs to be done in terms of infrastructure in the region that we're talking about, in the Arctic and these really remote northern communities, we know that there's been an infrastructure deficit for a long period of time. How is the Infrastructure Bank going to be a component of supporting and moving forward so that these communities have the ability to move forward for themselves economically?
President and Chief Executive Officer, Canada Infrastructure Bank
In our contribution to the broader effort—and this is a broader effort, and we're not going to pretend we're 100% of the solution—there are going to be situations, based on discussions that we've already had, where a combination of different levels of government and the interests of private investors, coupled with the CIB's ability to play a flexible role within the balance sheet of a project, will mean that we can be part of the solution.
NDP
Rachel Blaney NDP North Island—Powell River, BC
What we've heard again and again is that housing is a huge and significant barrier, and when I think about infrastructure projects, I think that housing would also create another barrier. How is the Infrastructure Bank going to be in any way able to move forward with projects if there isn't sufficient housing for people to work there, and also housing for the worker base?
President and Chief Executive Officer, Canada Infrastructure Bank
Housing is not one of our three priority sectors. There are other instruments that are expert and better suited to address that specific issue, knowing that it is obviously connected to the rest of the ecosystem to have a vibrant economy.
NDP
Rachel Blaney NDP North Island—Powell River, BC
In terms of the private sector addressing issues and looking at viable projects, this presents risk. I'm wondering, when you're working with them as they propose, if you look at these type of projects to address that issue of housing, because it does increase risk.
If you'd like to jump in on that, I'm fine.
Assistant Deputy Minister, Investment, Partnerships and Innovation, Office of Infrastructure of Canada
Are you referring to the ability to house people adjacent to infrastructure, say, in the north?
NDP
Rachel Blaney NDP North Island—Powell River, BC
We want to house people, but we are also looking at how we're going to support people who are living in housing that is completely overrun, where the infrastructure is falling down and people are getting sick. In the case of projects, businesses are looking at the risk. This is part of the risk for them. I'm just wondering how this was being addressed.
