Because of the long-term financing involved in these projects, the financiers for performance security require liquid instruments like letters of credit. However, contractors in North America have been using the bonding industry for that performance security. They don't necessarily have the balance sheets to support letters of credit and have been using the bonding facility to leverage their balance sheets.
EDC, Export Development Canada, through its temporary domestic powers has been able to help some of those Canadian firms obtain letters of credit or this liquid security that's required on these projects. However, there is a proposal to further restrict the ability of Canadian companies to use EDC's domestic financing powers on these projects. Our fear is when international or foreign companies come, they have in tow their EDC-type agency, their export credit agencies, and they have the ability to achieve that security.
Our concern would be if the measures are as restrictive as those being proposed for EDC, that might impair the ability of Canadian firms to compete on P3 projects here in Canada.