Canada Infrastructure Bank is set to offer a $1.28bn loan in order to build a $6.3bn electric rail system in Montreal, The Globe and Mail reports.
The loan, which is to be primarily managed and funded by Quebec’s pension regime, will see its interest rates increase from 1% to 3% over a 15-year period.
It is anticipated that the previously promised federal money for the project will be reinvested into other Quebec infrastructure plans.
This first announcement is thought to have been considered for a number of months with critics making it known that they felt the agency and the government’s infrastructure funding were slow to get underway.
Speaking to reporters, Infrastructure Minister, Francois-Philippe Champagne, said: “What we said from the beginning is that the infrastructure bank would allow (us) to do more for Canadians and this is what we’re doing.”
“That’s a flagship project where we think we can attract foreign investors as well and this is our first (project), so we need to talk about it.”
Government officials are expected to work with provinces, territories and cities to form a list of projects that are available for private backing over the next five years.