Mr. Speaker, with regard to the Canada Infrastructure Bank, or CIB, and part (a) of the question, the CIB incurred costs in the amount of $875,332.62 in professional fees to conduct due diligence on the Lake Erie connector project. These costs are comprised of legal expenses and technical advisory expenses. Total due diligence costs incurred represent less than 0.1% of the CIB’s previously announced investment commitment in the Lake Erie connector project and are aligned with reasonable costs and expenses incurred by other private sector and institutional investors to support technical and legal due diligence activities related to financial transactions in infrastructure projects.
With respect to part (b), commercial negotiations relating to the Lake Erie connector project have been suspended at this time. The CIB did not conclude a definitive project agreement with ITC Holding Corporation, the project proponent of the Lake Erie connector project, for the project to reach the financial close milestone, and no CIB financing has been provided in respect of the project. The CIB had previously announced an investment commitment in the amount of up to $650 million to the Lake Erie connector project. The CIB makes investment commitments to support proponents advancing their projects toward a final investment decision and to secure additional financing to enable the project to achieve financial close.
With respect to part (c), as reported in Fortis Inc.’s press release regarding its second-quarter earnings dated July 28, 2022, ITC Holding Corporation suspended development activities and commercial negotiations due to recent macroeconomic conditions that have impacted the proponent’s ability to secure a viable transmission service agreement within the required timeline. As such, the CIB has removed this project from its total of CIB investment commitments, given that the conditions that are required for an investment commitment are not presently being met. The CIB remains committed to the project’s positive outcomes in reducing greenhouse gas emissions and improving the reliability and security of Ontario’s electricity grid. The CIB remains available to the project proponent as necessary to continue discussions should project development activities resume.
With respect to part (d), representatives from ITC Holding Corporation notified the CIB after the close of business on Wednesday, July 27, 2022, that a press release would be issued the next day to provide an update on the Lake Erie connector project and inform market participants that ITC Holding Corporation suspended all project development activities and commercial negotiations on the project due to recent macroeconomic conditions.
With respect to part (e), a press release announcing the Lake Erie connector project’s suspension was issued on July 28, 2022. The CIB communicated this information to Infrastructure Canada officials in August as part of the CIB’s regular engagement with Infrastructure Canada officials to provide an update on the CIB’s results and information included in the CIB’s quarterly financial reporting. The CIB’s quarterly financial report for Q1 fiscal 2022-23, which was published on the CIB’s website on August 29, 2022, includes subsequent events note disclosure regarding the announcement of the suspension of the Lake Erie connector project in late July 2022.