Innovative financing partnership for new public municipal infrastructure
TORONTO, July 15, 2019 /CNW/ - Canada Infrastructure Bank (CIB) announced today an investment commitment of up to $20 million in the Township of Mapleton's water and wastewater project. The Township is seeking a consortium to design, build, finance, operate and maintain the municipality's new and existing water and wastewater infrastructure for up to 20 years. Mapleton will continue to own all existing and new infrastructure assets.
This partnership demonstrates how the CIB can enable the public and private sectors to improve infrastructure delivery in Canada and help the Township of Mapleton continue to provide households and businesses access to clean drinking water using modern infrastructure.
As part of the project, the Township will upgrade its water system including the building of a new water tower, upgrading an existing water pumping station, a wastewater treatment project, and a gravity sanitary collection system.
The Township of Mapleton is leading the competitive procurement process including selecting the preferred proponent. Mapleton will focus on its core role as asset owner and water utility regulator and will hold the selected proponent accountable to deliver the water and wastewater infrastructure.
Mapleton's innovative approach can be considered a pilot project to demonstrate new models for structuring and financing smaller municipal water and wastewater infrastructure projects.
The CIB's investment commitment will improve the cost of project financing and attract private capital expertise while ensuring appropriate risk transfer to the private sector. This is an example of how CIB's innovative financing model can be a catalyst for new infrastructure in both small and large communities.
The investment will be offered in the form of a standardized debt financing package to all proponents during the request for proposals open period. CIB will finalize a credit agreement with the project's Preferred Proponent at Financial Close.
- The Township of Mapleton is located in the southern Ontario County of Wellington. The Township is an agricultural and rural community of approximately 11,000 residents.
- The project will expand access to safe drinking water and capacity for the treatment of wastewater for up to 20 years.
- The project is a new model demonstrating how the CIB can partner with municipalities of all sizes across Canada to attract private sector capital to improve financing related to upgrading aging water and wastewater systems.
- CIB is focused on transformational projects that are in the public interest. Public transit, trade and transportation, green infrastructure and broadband are its priority sectors for investment.
- As a crown corporation, CIB uses federal funding to attract private sector and institutional investment to new revenue-generating, infrastructure projects in the public interest. CIB's partnership investments are helping infrastructure projects across Canada move forward.
Mapleton Council is exploring new funding and partnership models to benefit our community over the long term. The approach we are using will ensure Mapleton's water and wastewater needs will be met safely, efficiently and affordably. We are proceeding with a competitive procurement process and are very pleased to have the Canada Infrastructure Bank involved to provide an innovative financing option. We hope that our approach to improve our infrastructure will create best practices for other municipalities to modernize their water and wastewater systems.
Gregg Davidson, Mayor, Township of Mapleton
This is an exciting partnership between the Township of Mapleton and Canada Infrastructure Bank. CIB is a new model of federal support for projects including green infrastructure. Our innovative financing approach will help Mapleton invest in new, expanded and sustainable public water and wastewater facilities.
Pierre Lavallée, President and CEO, Canada Infrastructure Bank
The Government of Canada created the CIB to play a leading role in new infrastructure projects that will benefit communities. The financing support and infrastructure expertise provided by the CIB to the Township of Mapleton's project will ensure long-term access to sustainable public water and wastewater facilities. This is an opportunity to create a new model that could improve publicly-owned water and wastewater systems, including in smaller communities across Canada.
The Honourable François-Philippe Champagne, Minister of Infrastructure and Communities
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SOURCE Canada Infrastructure Bank
For further information: Contacts: Felix Corriveau, Canada Infrastructure Bank, [email protected], 416-550-0900