Caisse to form CDPQ Infra to carry out infrastructure projects
La Caisse de dépôt et placement du Québec has reached an agreement with the Québec government establishing an innovative business model for the execution of major infrastructure projects.
CDPQ Infra, a new Caisse subsidiary to be established pending legislative amendments. The Québec government has committed to introduce these amendments to the National Assembly as soon as possible.
The new 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. 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 & CEO of la Caisse. “Our clients look for tangible projects that generate stable, predictable returns. Infrastructure is perfectly aligned with their long-term goals.
“Today’s agreement will allow us to increase our exposure to infrastructure while concretely putting our expertise to work for Québec’s economy,” added Sabia. “These investments will generate returns that help to secure Quebecers’ retirement for the future. It’s a win-win partnership that benefits everyone.”
Two projects valued at approximately $5 billion have been earmarked with target completion date set at end of 2020.
photo courtesy of The Jacques Cartier and Champlain Bridges Incorporated