La Caisse enters agreement with Quebec government to focus on public transit system projects

Written by Jenifer Nunez, assistant editor

La Caisse de dépôt et placement du Québec has entered into an agreement with the Québec government establishing a business model for the execution of major infrastructure projects. The model updates the government's business practices by entrusting la Caisse with the execution of infrastructure projects, which will speed up their delivery and strengthen Québec's economic growth. For la Caisse, the deal represents an opportunity to grow Quebecers' savings by developing and operating assets that will generate commercial returns.

 

Under the terms of the agreement, the Québec government will identify projects that may present an interest for la Caisse.

While the agreement does not limit the scope of projects that can be carried out by la Caisse, two projects have been identified as priorities including a public transit system on Montréal’s new Champlain Bridge and a public transit system linking downtown Montréal to the Montréal-Trudeau International Airport and the West Island.

Based on its international experience, la Caisse is aiming to complete both projects by the end of 2020 at the latest. In addition to the timely adoption of legislative amendments allowing for the creation of its new subsidiary, achieving this objective will depend on the efficient delivery of permits and other required authorizations.

Assuming this interest is confirmed, la Caisse will become responsible for project planning, financing, development and operation. The government retains responsibility for setting broad project parameters and approving solutions presented by la Caisse on the basis of consultations with the various stakeholders. The government thus preserves its role as guardian of the public interest, while entrusting la Caisse, an independent public institution with extensive expertise in infrastructure, with project execution in accordance with global best practices and the highest standards of efficiency and transparency.

“Infrastructure has been central to our investment strategy for several years,” said Michael Sabia, president and chief executive officer of la Caisse. “Our clients look for tangible projects that generate stable, predictable returns. Infrastructure is perfectly aligned with their long-term goals.”

The launch of this business model depends upon the adoption of legislative amendments allowing for, among other things, the creation of a new infrastructure subsidiary for la Caisse. The Québec government has committed to introduce these amendments to the National Assembly as soon as possible.

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