Canada’s second largest pension fund has agreed to take over Quebec’s new public transit projects.
Under an agreement reached between the Caisse de dépôt et placement du Québec and the Quebec government, the pension fund will finance and own the province’s new public transit projects.
More from the Montreal Gazette:
The Caisse de dépôt et placement du Québec and the Couillard government will unveil Tuesday an agreement that will see the pension fund take over financing and ownership of new public transit projects in the province, according to a published report.
Quoting sources familiar with the new deal, The Globe and Mail reported Monday night that the Caisse will assume ownership over new transit assets along with the responsibility for building them. It will become project owner for new transit projects. Sources described the arrangement as a “new way of financing and running public transportation infrastructure,” essentially privatizing the plan for new public transportation projects but with an established investor.
Infrastructure “is not government-owned, directly or indirectly,” the newspaper quoted one person close to the situation as saying. “It will be run like a private business.”
The first two projects have already been revealed. From CBC.ca:
The first two projects are a light-rail transit system on the new Champlain Bridge in Montreal and the Train de l’Ouest to improve commuter train service to the West Island and Montreal’s Trudeau International Airport.
The Caisse, which manages public pension plans in Quebec, is aiming to complete the projects, worth $5 billion, before the end of 2020.
Other projects proposed by the government would be added and financed by equity investment and long-term debt.
The Caisse de dépôt et placement du Québec manages $214 billion in assets and is Canada’s second largest pension fund.
Photo by Claire Brownlow via Flickr CC License