Toronto: Justin Trudeau, Canada's Prime Minister, is setting up his new infrastructure bank in Toronto, rebuffing a campaign from the heart of Canada’s oil patch to see it headquartered outside the country’s financial hub.
Infrastructure Minister Amarjeet Sohi announced the location yesterday as he launched a search for a chairperson, board and chief executive officer of the bank, which will be financed with C$35bn ($25.6bn) in government funds. The “goal” is to have the bank in operation late this year.
The bank’s objective is to attract private capital to build new projects, particularly those with revenue streams that can generate a return for investors. Finance Minister Bill Morneau has said government will look for five or six dollars of private money for every one from government. The bank will “build more infrastructure for Canadians that will create growth and equip our communities for a more sustainable and productive future,” Sohi said in a statement.
The government unveiled details of the bank last month in a proposed law enacting parts of its annual budget. Of its C$35bn investment, C$15bn will be direct funding to push projects to approval, and C$20bn will be for loans or equity stakes.
