![Caisse to develop Quebec infrastructure projects](https://www.benefitscanada.com/wp-content/uploads/sites/7/2011/03/Quebec1-e1509720431702.jpg)
The Caisse de dépôt et placement du Québec has reached an agreement with the Quebec government, which plans to establish a new business model for the execution of major infrastructure projects.
The model updates the government’s business practices by entrusting the Caisse with the execution of infrastructure projects.
Under the terms of the agreement, the government will identify projects that may present an interest for the Caisse. Assuming this interest is confirmed, the Caisse will become responsible for project planning, financing, development and operation.
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“Infrastructure has been central to our investment strategy for several years,” says Michael Sabia, president and CEO of the Caisse. “Our clients look for tangible projects that generate stable, predictable returns. Infrastructure is perfectly aligned with their long-term goals.”
While the agreement announced today does not limit the scope of projects that can be carried out by the Caisse, two projects have been identified as priorities: a public transit system on Montreal’s new Champlain Bridge and a public transit system linking downtown Montreal to the Montreal-Trudeau International Airport and the West Island.
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According to preliminary studies commissioned by the Quebec government, these projects are expected to require financing of approximately $5 billion.
The Caisse will only assume responsibility for projects that have the potential to generate commercial returns that serve the interests of its clients (i.e., all Quebecers who save for retirement).
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 the Caisse. The Quebec government has committed to introduce these amendments to the National Assembly as soon as possible.
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