Canada Infrastructure Bank (CIB) will invest up to CAD$2 billion ($1.49 billion) in the GO Expansion – On Corridor project, which has been called the largest infrastructure project in Canada.
The project will include 205 kilometers of new track and 687 kilometers of electrified track, improving rail transportation in the Greater Toronto and Hamilton Area.
At present, the GO Transit system has a daily ridership of more than 200,000 passengers making 1,500 weekly trips. Upon completion, the system will make more than 6,000 trips per week and double annual ridership from 70 million to 200 million.
CIB will serve as a financing partner and adviser to Infrastructure Ontario and Metrolinx, who are co-sponsoring the project as well as leading the competitive procurement process.
The CIB investment will be offered in the form of a standardized debt financing package to all proponents during the request for proposals open period.
When the project reaches financial close, CIB will finalize a credit agreement with the preferred proponent selected by Infrastructure Ontario and Metrolinx.
A shortlist of bidders have already been approved to move forward in the approval process, which includes submitting proposals to design, build, finance, operate and maintain the project.
Bidders include EnTransit, MTR Kiewit Partners, Oncore Transit, and ONxpress Transportation Partners.
The Government of Canada created the CIB to strategically invest CAD$35 billion ($26 billion) of federal funding to attract private-sector investment into revenue-generating infrastructure projects, such as public transit, trade and transportation, green infrastructure, and broadband telecommunications.
This will be the second transit investment by CIB.
