I understand.
First, it would incorporate the bank as a crown corporation effective on royal assent.
Second, the legislation would set the mandate and purpose of the bank, which would be to make investments in revenue-generating infrastructure projects that are in the public interest and to seek to attract private sector and institutional investment to those types of projects.
Third, regarding functions and powers of the bank to help achieve its purpose, the bank would be able to make investments through a wide variety of financial tools, including debt and equity investments and others. The bank would make its investments directly in the infrastructure project, and its investments would be alongside the private and institutional investors as well as any other government investor. This would be a co-investment or co-lending model. The bank may also make loan guarantees with the separate approval of the Minister of Finance, and this separate approval is consistent with the general requirement for crown corporations.
The bank also has functions other than making investments, including acting as a centre of expertise in advising all governments on revenue-generating projects and working with all levels of government to collect and share data for future investments.
Fourth, around governance, it sets out the high-level parameters in the bank. By and large, the Financial Administration Act applies regarding crown corporations. Under the proposed legislation, with respect to the board, members and the CEO would be appointed by the government through the Governor in Council, and the board would play a role in the selection of the CEO.
On May 8, the government, on an anticipatory basis, launched an open, transparent, and merit-based selection process to identify the bank's senior leadership. Through these processes, the government would first select a chairperson of the board followed by the remaining directors and a chief executive officer. Any appointments would only be effective if legislation establishing the bank is passed by Parliament and receives royal assent.
The fifth aspect—and I'm nearing the end, Madam Chair—is a proposal to allow the Minister of Finance to pay up to $35 billion to the bank. It is expected that the bank's asset and liabilities and revenues and expenses will be fully consolidated in the Government of Canada's books. We expect capital only to be transferred to the bank as needed to reduce treasury function, so it would only get parts of that money over time, and while the cash amount would be $35 billion, the government has announced that the bank would be authorized to fiscally expense, on an accrual basis, up to $15 billion over 11 years.
Going quickly, Madam Chair, the crown corporation would be accountable to Parliament in a number of important ways and required to submit a summary of its annual corporate plan as well as an annual report to Parliament. It will be subject to the Privacy Act and the Access to Information Act. The only exception is that commercially sensitive third-party information would be kept confidential, which is about the commercial partner, not the transaction. It will be subject to the highest standard of having its books audited by both the Auditor General of Canada as well as a private sector auditor. Parliament would have authority to review the bank's legislation every five years on its operation.
In conclusion, the bank will be one more tool for partners to use, if they choose, in addition to traditional infrastructure funding programs. The government supports local decision-making, including supporting municipalities, provinces, and territories as they set the infrastructure priorities that best meet the needs in their communities.
Projects supported by the bank will be structured using conventional and robust legal arrangements among partners designed to protect the interests of Canadians. Government and officials have been working collaboratively with both the infrastructure and finance departments, and we have consulted extensively and widely.