Case for Canada Infrastructure Bank ‘not compelling,’ researchers warn
BILL CURRY
OTTAWA — The Globe and Mail
Published Thursday, May 04, 2017 2:43PM EDT
Last updated Thursday, May 04, 2017 2:54PM EDT
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The bank is primarily aimed at convincing large institutional investors, such as pension funds, to invest in infrastructure projects in Canada. Many Canadian pension funds are already invested in projects such as airports in other countries but have been reluctant to make similar moves in Canada.
Proponents argue that an infrastructure bank would allow governments to transfer risks – such as debt, cost overruns and long-term maintenance – on to the private sector in exchange for a negotiated rate of return.
Conservative MP and deputy finance critic Dan Albas told the House Thursday the idea of the bank “scares the heck out of me,” because he said it will likely only fund projects in Canada’s largest cities.
“The Liberal government is borrowing money it does not have, at reduced rates, so that Canadian taxpayers can finance and subsidize high rates of return for private international investors,” he said.
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