Evidence of meeting #29 for Transport, Infrastructure and Communities in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was projects.
A video is available from Parliament.
Conservative
Dan Muys Conservative Flamborough—Glanbrook—Brant North, ON
Obviously there's a gap that the private sector was unwilling to fill. Is it fair to say that this project is really dependent upon this public financing in order to proceed?
Managing Director, Slate Asset Management
I think that the project benefits from the Canada Infrastructure Bank financing.
In response to your question.... I'm sorry, but can you repeat the question?
Conservative
Dan Muys Conservative Flamborough—Glanbrook—Brant North, ON
My question is with regard to whether or not this project would be viable at all without CIB funding. In other words, it's fairly dependent upon that.
Managing Director, Slate Asset Management
Regarding dependencies, I think the loan itself was structured in a way that provides certain benefits for the project characteristics, it being the first renewables-to-retail program of its kind. Definitively, I don't think there's an answer to your theoretical question.
Conservative
Dan Muys Conservative Flamborough—Glanbrook—Brant North, ON
Okay. Again, there's not exactly clarity.
Earlier, you indicated that there were no personal guarantees provided by principals or executives in the project, so, really, the public is assuming the risk.
Managing Director, Slate Asset Management
For project-based financing, personal guarantees would be abnormal and not market convention. This project-based financing is a very tight financing structure. Personal guarantees are not typical of project-based financing.
Conservative
Dan Muys Conservative Flamborough—Glanbrook—Brant North, ON
The linkages to the Liberal Party have been established. Political relationships were leveraged, whether that was formally or informally.
What safeguards were put in place to make sure those connections had no influence on the approval of this decision?
Managing Director, Slate Asset Management
Just to make one point of clarification, the project-based financing was for the Mersey River wind project, which we led the financing for. It is distinct from Roswall Development Inc., which led development through to financial close.
Liberal
The Chair Liberal Peter Schiefke
Thank you very much, Mr. Rodgers.
Thank you, Mr. Muys.
Mr. d'Entremont, you have the floor for five minutes.
Liberal
Chris d'Entremont Liberal Acadie—Annapolis, NS
Thank you, Mr. Chair.
It's a pleasure to see all of you here this evening.
I want to maybe continue where my colleague from South Shore—St. Margarets left off when it comes to consultation with local leaders and when it comes to working with local mayors and municipalities. Of course, this is in the region of Queens. There are a number of different communities in and around that area.
I'm just wondering how your consultation went with the Region of Queens and with the other leaders in that area.
Chief Executive Officer, Roswall Development Inc.
We have had substantial interest from the community members, particularly the municipalities on the south shore of Nova Scotia. As I noted previously, we have four municipalities that have signed up to buy power from Renewall Energy. Three of them would be on Nova Scotia's south shore. The Town of Bridgewater, the Region of Queens and the District of Shelburne have signed up to buy power from us.
In particular, the Mersey River wind farm is located in the district of Queens, and we were very pleased to receive unanimous approval from the council of Queens for the development agreement associated with this project.
We undertook an environmental assessment, which involved multiple public meetings. The public comments received as part of our environmental assessment were significantly positive throughout. There were almost no negative comments whatsoever, which, as I'm sure the member is aware, is not always common for wind projects in Nova Scotia or anywhere.
I think the reason for the tremendous support we enjoy from the south shore of Nova Scotia is that this project is different. This project is the first wind farm in Nova Scotia to not sell to Nova Scotia Power. It allows customers to buy renewable energy directly. We think that is a big differentiator, and it has garnered significant community support throughout the region.
Liberal
Chris d'Entremont Liberal Acadie—Annapolis, NS
During the consultation process, did you reach out to federal members? I know you reached out to my office, and we had a nice long chat about that. I'm just wondering if you had the opportunity to talk to the member for South Shore—St. Margarets prior to Ms. Fancy's being the member.
Chief Executive Officer, Roswall Development Inc.
Yes, we've attempted to engage with all members of Parliament from Nova Scotia regarding this project. As I stated previously, there's a significant amount of energy-related activity taking place in Nova Scotia—onshore, offshore, hydrogen and so forth—so differentiating ourselves and explaining ourselves....
Frankly, the first question we often got from MPs and other people was, “Really? You're going to let me switch from Nova Scotia Power to someone else?” That's the first question, and that summarizes the need for Roswall to engage with members of Parliament, with MLAs and with members of the public to describe our program, the structure and how it works. As you can imagine, people haven't had a choice of who they purchase electricity from in Nova Scotia, so it is a topic that requires explanation and understanding for people to really appreciate.
Liberal
Chris d'Entremont Liberal Acadie—Annapolis, NS
As I was positive about the project, I'm pretty sure that Mr. Perkins was positive about it and was supportive of the loan and of the total project. As we try to decipher why funding was provided to it, I'm wondering whether Mr. Perkins did some work for you to try to get the government to support your loan.
Chief Executive Officer, Roswall Development Inc.
Thank you, Mr. Chair.
I can't speak to Mr. Perkins's personal opinions about the project or the efforts that he undertook indirectly. What I can speak to is that I think a lot of the reason for the Canada Infrastructure Bank's interest in Nova Scotia is that the Progressive Conservative Government of Nova Scotia indicated substantial clean energy targets and transition. The Mersey River wind farm being identified as a critical regional priority by the Government of Nova Scotia played a big part in that.
Liberal
The Chair Liberal Peter Schiefke
Thank you very much, Mr. d'Entremont.
Thank you, Mr. Roscoe.
Mr. Barsalou‑Duval, you now have the floor for two and a half minutes.
Bloc
Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC
Thank you, Mr. Chair.
I'll start with you, Mr. Rodgers. You got a $200-million loan from the Canada Infrastructure Bank. Earlier, you didn't want to confirm that or tell me why the private sector had refused to fund your project.
I have another question for you. What are the advantages of doing business with the Canada Infrastructure Bank over the private market? In fact, what advantages has the Canada Infrastructure Bank given you?
Managing Director, Slate Asset Management
Regarding the Canada Infrastructure Bank's interest in the project, it is the first of its kind in the province, and early engagement for a project of this nature is beneficial when pushing through the development process, which can be lengthy. I think Dan can attest to—
Bloc
Xavier Barsalou-Duval Bloc Pierre-Boucher—Les Patriotes—Verchères, QC
If the private sector didn't want to fund your project and the Canada Infrastructure Bank did, there must be a reason. Did the private sector charge you extremely high rates when the Bank was offering you lower ones? Do you have favourable repayment conditions compared to the conditions the private sector would have given you? What's the difference?
Otherwise, why choose the bank if there is no difference and if there are no advantages? Did you just go with the bank because it was the only one that was willing to take the risk of doing business with you, and no one else was interested because of the significant risks?
Managing Director, Slate Asset Management
As previously stated, as infrastructure investment professionals, we would explore all avenues of financing, specifically for development projects of this nature. We saw that the Canada Infrastructure Bank had lent to other wind projects in the province, and I think part of that may be...due to the decarbonization aspects of Nova Scotia's targets.
Liberal
The Chair Liberal Peter Schiefke
Thank you very much, Mr. Rodgers.
Thank you, Mr. Barsalou‑Duval.
Next we'll go to Mr. Lawrence.
Go ahead for five minutes, please, sir.
Conservative
Philip Lawrence Conservative Northumberland—Clarke, ON
Was CIB the first lender you...for the project?
Managing Director, Slate Asset Management
I don't recall exactly the first potential financing provider we would have spoken to about this project.
Conservative
Philip Lawrence Conservative Northumberland—Clarke, ON
Not spoken to.... Were they the first lender to sign the paperwork?
Managing Director, Slate Asset Management
As is customary for project financing of this nature, loan documents reach financial close on—