La Caisse de dépôt et placement du Québec has been selected by the Canadian province to carry out infrastructure projects.
The planning, financing, execution and operation of major public infrastructure projects has been handed to La Caisse, which will created a new subsidiary, CDPQ Infra.
The Québec government, which remains in charge of defining the orientation of infrastructure projects, made the move as it looks to limit the impact of projects on the government’s debt and deficit.
“The business model allows the Québec government to green-light the execution of critical infrastructure, while leaving budget space for the pursuit of other important projects,” the province said.
The selection of the pension fund manager, meanwhile, gives it the opportunity to increase its investment in infrastructure.
The deal, La Caisse said, gives it a “promising and readily exportable solution”, which it will look to replicate elsewhere.
Montreal-based La Caisse will decide financing structures for projects, funded by a mix of equity and debt from the pension fund manager and partners.
Two priority projects have been selected for a potential CAD5bn (€3.5bn) investment – a public transit system on Champlain Bridge and a public transit system linking Montréal to the MontréalTrudeau International Airport and the West Island.
Both are due for completion by 2020.