The head of the Canada Infrastructure Bank says the power and export-enabling projects the Crown corporation backs are more crucial than ever as trade tumult intensifies with the United States.
“In the face of lots of uncertainty, the one thing you can know is that we're going to need that electricity, energy and trade infrastructure in the future even more," said Ehren Cory.
“It’s an imperative and it’s been an imperative for a while.”
Cory's comments come against the backdrop of U.S. President Donald Trump's threats to impose sweeping tariffs on his country's neighbours and musings about making Canada the "51st state." A federal election call is also looming in Canada.
The infrastructure bank, created in 2017 with $35 billion in capital, invests in revenue-generating projects that are deemed to be in the public good, but would have trouble getting off the ground with private-sector money alone. Ottawa sets out broad priorities for the arm's-length agency, and one of its current focus areas is clean power generation, storage and transmission.
The bank has allocated $10 billion to the clean power sector and expects to invest in some 30 renewable projects over the next three years. Its investments in the clean energy space include hydroelectric, wind, solar and nuclear projects in Ontario, Nova Scotia, Alberta, Saskatchewan, British Columbia and the three northern territories. Two in Nova Scotia involved loans to Indigenous communities for ownership stakes in energy projects.
There's long been discussion about a cross-Canada power transmission line, and Cory cited it as an example of the type of project that could help buffer the country during turbulent times.
The bank is also keen on investments in trade logistics these days, Cory added.
In January, it announced a $60.7-million loan to help the Metlakatla Development Corp. and the Prince Rupert Port Authority develop an Indigenous-led logistics hub on the northern B.C. coast. Last year it also announced a $150-million loan for a similar hub in Prince Rupert.
The federal Conservatives and New Democrats have in the past been critical of the slow ramp up of investments, and have promised in previous election campaigns that they would dismantle the infrastructure bank.
As Canadians once again prepare to go to the polls this year, Cory said whichever party forms government will appreciate the need for infrastructure investment.
"The good news is infrastructure and investing in infrastructure is the most apolitical, non-partisan issue you can find," he said.
"There’s not a mayor or a premier or a federal leader who doesn't understand that infrastructure is one of the main ways that governments help build productive economies and the kinds of societies we want to live in."
The investment mandate for the bank has shifted under the Liberals over the years, and it could be that a potential Conservative government sets out different parameters, he said.
"Just look at the world. Think of something like the North … the incredible opportunity in the North around resources, the need for sovereignty, the need for economic development and growth for northern peoples," he said.
"I would predict that any government will probably direct us to do even more there than we already are."
