Transport Committee on March 25th, 2026

[The Chair, Liberal, Peter Schiefke]

I call this meeting to order.

Welcome to meeting number 27 of the Standing Committee on Transport, Infrastructure and Communities.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Wednesday, March 11, 2026, the committee is commencing its study of the loan from the Canada Infrastructure Bank to the Mersey River wind project.

Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders. I'd like to make a few comments for the benefit of witnesses and members.

First, please wait until I recognize you by name before speaking. For those on Zoom, at the bottom of your screen you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

This is a reminder that all comments should be addressed through the chair.

For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can. We appreciate your patience and understanding in this regard.

Colleagues, before I welcome the witnesses for the first half of today's meeting, I would like to bring to your attention the budget for this study that was circulated to all members. It's moved by Mr. Albas. Are we all in favour of adopting the budget?

[Some hon. members]

Agreed.

[The Chair, Liberal, Peter Schiefke]

Thank you, colleagues.

Appearing before us today, for the first half of the meeting, we have, from the Canada Infrastructure Bank, Ehren Cory, chief executive officer; Sashen Guneratna, managing director; and Frédéric Duguay, general counsel and corporate secretary. All three witnesses are joining us by video conference.

Welcome to all three of you.

We'll now turn the floor over to you, Mr. Cory, for your opening remarks. For that, you have five minutes, please.

[Ehren Cory, Chief Executive Officer, Canada Infrastructure Bank]

Thank you very much, Mr. Chair.

Good afternoon, honourable members of the committee. Thank you for the opportunity to appear before you today in relation to your Mersey River wind farm project study.

Joining me, as mentioned by the chair, are Frédéric Duguay, who is our general counsel and corporate secretary, and Sashen Guneratna, who is the managing director in our investment team and who led the Mersey River investment.

Across Canada, electricity needs are growing, and meeting that demand while keeping power reliable and affordable is a real challenge.

The Canada Infrastructure Bank, or CIB, was created to help deliver critical infrastructure across the country, and we have a specific mandate to invest in clean energy projects.

In Nova Scotia, the demand for electricity is growing. At the same time, the province is transitioning away from coal-fired power generation. This requires major capital investments to add clean power and renewable technologies. As this transition occurs, the province and Premier Houston are equally focused on maintaining access to reliable and affordable energy.

To date, the CIB is investing in eight clean energy projects in Nova Scotia: six wind projects, a transmission intertie with the Province of New Brunswick and the province's first energy storage project. Nationally, we're currently committed to financing 24 clean power projects. All of these are designed to increase supply, strengthen reliability and help mitigate the financial impact on ratepayers.

Across all of our priority sectors, as a reminder for committee members, as of December 31, the CIB has invested $18 billion across 108 projects. Eleven of those are completed and 89 are in construction.

Since our launch in 2017, the CIB has become an increasingly efficient operation. Since July 2024, we've been collecting enough revenue from the repayment of capital and interest to cover 100% of the CIB's operating costs. Additionally, the CIB's operating expenses represented only 0.2% of the capital we've committed to projects, meaning more than 99% of our spending is directed to delivering the infrastructure that Canadians need.

For all our investments, we crowd in private capital. We act as a catalyst, not a competitor to the private sector to help unstick projects. Every project undergoes a market sounding to confirm that private partners will participate alongside us.

If we determine that a project can be financed entirely by the private sector, we do not invest.

The Mersey River wind farm is expected to generate almost 150 megawatts, enough to energize more than 50,000 homes. As the first project under Nova Scotia's renewable-to-retail program, it allows consumers to buy energy produced from 100% renewable sources directly, introducing consumer choice and competition in the market, and it supports the province's emission reductions goals.

As a first of its kind model, the project carries unique first mover and revenue risks, particularly around securing and retaining retail customers. This meant that traditional private lenders were not prepared to finance the full project on their own.

That is where the CIB came in.

We are lending $206.4 million to Mersey River wind alongside Slate Asset Management, the majority owner, and Roswall Development, the minority owner and construction manager. Our financing helped de-risk the project, crowd in private capital and allow it to move forward.

This loan was not provided at a below-market rate. Given the unique commercial risks of the project, the prevailing market rate is being charged. It's true that this is not always the case for the CIB's investments. The interest rate we charge varies for each project, and reflects the specific risks being addressed.

As an arm's-length organization, the CIB's board and management make independent, non-partisan, commercial investment decisions. Across all 108 of our investments, we apply a consistent and rigorous process to confirm that a project fits within our mandate, delivers public benefits and meets our strict due diligence standards. This includes conflict of interest checks, know-your-client reviews and compliance with legal and regulatory requirements.

The Mersey River wind farm project was no exception. The project aligns with our clean power sector and the CIB Act. Following a rigorous review, no material conflicts of interest or client concerns were identified.

Lastly, like all CIB-financed projects, it's important to repeat that CIB loans are repaid and repaid with interest. Repayment allows us to reinvest and get more infrastructure projects built, while delivering good outcomes for Canadians.

Thank you, Mr. Chair. I look forward to your questions and the discussion.

[The Chair, Liberal, Peter Schiefke]

Thank you, Mr. Cory.

We'll begin our line of questioning today with Dr. Lewis.

The floor is yours. You have six minutes.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Thank you, Mr. Cory.

Canadians expect that taxpayer-backed financing decisions are going to be made on merit, with strict due diligence and without political influence. Today, we're examining a $206-million loan from the Canada Infrastructure Bank to the wind farm project linked to several well-connected Liberal insiders, including former MPs.

Mr. Cory, small businesses in communities like Haldimand—Norfolk, where I live, and across Canada are paying average bank rates of roughly 8%. The Infrastructure Bank is funded by taxpayer dollars, so you can imagine how taxpayers feel about such deals being made in secrecy with Liberal insiders.

Generally, small businesses are taking out loans at an 8% rate. Can you tell us whether the rate you have given this project is less than 8%?

[Ehren Cory]

As I said in my opening comments, for each of our projects, we charge an interest rate that's based on the individual project. What I can confirm is that for this project, we're charging what is a generally accepted market interest rate for a large industrial wind project of this nature, so the financing....

The reason we did this loan is all about the risk of the consumer program. As I described, this is the first in what's called the renewable-to-retail program, whereby Nova Scotians can choose to buy their power directly from a 100% renewable source. It creates choice in the market, and allows both industrial and retail clients to buy clean power directly from the source, so the loan we provided is market competitive.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

What exactly is the interest rate? Could you tell us what the interest rate is that was granted to this company?

[Ehren Cory]

Mr. Chair, as we've discussed at this committee in the past, each of our negotiations.... Given that they're bespoke and competitive, we don't disclose individual interest rates. What I can confirm is that this is a market rate.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Mr. Cory, do you believe taxpayers, who pay your salary and fund these loans, deserve to know the terms of a $206-million loan that appears to benefit Liberal Party-connected insiders?

[Ehren Cory]

Mr. Chair, the loan benefits Nova Scotians because it creates new renewable power in the province and it creates consumer choice to be able to buy clean power. That is who the loan benefits, to be very clear—and every one of the CIB's loans.

We are extremely transparent with our owners, who are all of you and taxpayers, about all of our money. You can find on our website the details of this investment, the size of it, who the borrower is and where the project is located.

We'll continue to be as transparent as we possibly can be because we think that's absolutely part of our job—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Mr. Cory, we're not asking for commercial secrets. We're asking for transparency with taxpayers' money. You know very well that the average business person pays 8% interest to borrow money to fund their business. That is not the rate for this company. We know it is substantially lower than the rate the average taxpayer or business is getting.

[Ehren Cory]

The benchmark interest rate you would use for a project like this is that of other large-scale renewable and energy projects across the country. That's the competitive interest rate we're charging. I don't think it's a direct comparison with small borrowers, as Dr. Lewis asked. For sure, we're charging a rate that would match what you'd see on projects like this across the country.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Any company choosing to accept public financing should expect a higher level of scrutiny than a standard private bank.

What is so secret about this interest rate? Do you not believe taxpayers have the right to know what rate the CIB is lending out at, on their funds?

[Ehren Cory]

The CIB is a Crown corporation whose job is to get value for taxpayers, but we operate as a commercial institution, lending money to people across the country. Part of our negotiations with those parties is confidentiality regarding the terms. I don't want to be completely specific.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

I don't know if it's 1%, 2% or 3%. You will not disclose the rate, because it's a secret Liberal insider deal.

[Ehren Cory]

I'll just repeat that the interest rate is an acceptable market rate that is higher than those quoted by the member.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Mr. Cory, did the bank know, before granting this low-interest, taxpayer-funded loan, that the individuals involved in this project had past roles in the Liberal government or political activity?

[Ehren Cory]

I'm going to have Mr. Duguay talk through our due diligence.

I'll just say this about the way our work goes when we are approached for a loan—in this case, by the equity owner slate. We conduct a review of the project. Eventually, if we decide to move forward with the loan, we conduct due diligence, which includes conflict of interest checks and what's called, in the financial industry, “know your client” reviews. These were conducted for this project.

Mr. Duguay can speak to the specifics.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Actually, Mr. Cory, did you know? You said—

[The Chair, Liberal, Peter Schiefke]

I'm sorry, Dr. Lewis. We're out of time. I can let Mr. Duguay add to that, if you like.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Go ahead.

[The Chair, Liberal, Peter Schiefke]

I think it would be helpful for the committee.

Mr. Duguay, you have 30 seconds to add to the response.

[Frédéric Duguay, General Counsel and Corporate Secretary, Canada Infrastructure Bank]

Thank you, Mr. Chair.

Briefly, in 30 seconds, we have adopted due diligence guidelines. They are transparent and publicly available on our website. The guidelines are in the integrity due diligence policy. We conduct due diligence and KYC checks across all project counterparties, which would include the corporate entity and the principals behind the corporate entity. That would include reviews that are aligned with guidance published by FINTRAC and adopted by other financial institutions.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Duguay.

Thank you, Dr. Lewis.

Next, we'll turn the floor over to Ms. Fancy.

You have six minutes.