Launching the Ontario Infrastructure Bank
As the government moves forward with its ambitious Plan to Build, it is introducing an important new tool to attract capital to help build essential infrastructure that would not otherwise get built.
Ontario is launching the Ontario Infrastructure Bank, a new, arms-length, board-governed agency that will enable public-sector pension plans, other trusted institutional investors and Indigenous communities to further participate in large-scale infrastructure projects across the province.
Institutional investor participation will help the government deliver more infrastructure faster, while leveraging additional capital from investors, and helping to maintain a responsible fiscal plan for today and for future generations.
The government is proposing to provide $3 billion to the Ontario Infrastructure Bank in initial funding to support its ability to invest in critical infrastructure projects.
How the Ontario Infrastructure Bank Can Help Build Ontario
To meet the growing needs of the province’s communities — who are welcoming the thousands of people moving to Ontario each year — the Province must build more infrastructure. Ontario taxpayers alone cannot fund the infrastructure the province needs. As the government moves forward with Ontario’s Plan to Build, it is looking at new ways to attract trusted Canadian institutional investors to help build essential infrastructure.
Initially, projects financed through the Ontario Infrastructure Bank will focus on the following priority areas:
- Long-term care homes
- Energy infrastructure
- Affordable housing
- Municipal and community infrastructure
As one of its initial priorities, the Ontario Infrastructure Bank will develop a detailed process to ensure there is appropriate qualification and selection of projects and partners in priority areas based on financial and public benefit criteria. The Ontario Infrastructure Bank board would have the authority to select projects and project partners.
The Ontario Infrastructure Bank will work closely with Infrastructure Ontario (IO). IO will continue to progress through public tendering of all projects that have been assigned to it. IO has successfully delivered 29 major projects since 2020. It is presently constructing 27 major projects and is actively procuring 12 more. An additional 13 projects are forecasted to commence procurement in 2024. The timeline for these projects is unchanged.
Other jurisdictions have taken a similar approach to support infrastructure investments through the creation of infrastructure banks.
Accessible description of Chart
Infrastructure Banks Launched by Other Jurisdictions
- Canada Infrastructure Bank established 2017 (Canada);
- California Infrastructure and Economic Development Bank (IBank) established 1994 (USA);
- Connecticut Green Bank established 2011 (USA);
- UK Infrastructure Bank established 2021 (United Kingdom); and
- KfW established 1948 (Germany).
Source: Ontario Financing Authority.