Passage of Bill 38 - A financing model to develop strategic transportation infrastructures for the city without increasing our debt

Montréal, June 12, 2015 ‒ The Board of Trade of Metropolitan Montreal is pleased that Québec’s National Assembly passed Bill 38 today, An Act to allow the Caisse de dépôt et placement du Québec to carry out infrastructure projects.

“We congratulate the members of the National Assembly for moving quickly to give Québec the means to develop strategic public transit infrastructures for the city,” said Michel Leblanc, president and CEO of the Board of Trade of Metropolitan Montreal. “This bill offers us the benefit of the Caisse’s international expertise in major infrastructures. We have seen a trend in other parts of the world whereby institutional investors create a portfolio of infrastructure investments, recognized for their stability, predictability and attractive returns. Québec needs to do the same.”

“Maintaining and developing our public transit assets is critical for the city’s competitiveness,” Mr. Leblanc said. “In the context of precarious public finances and a limited ability to take on debt, it is essential that we search for new sources of financing and innovative solutions. The land value capture this model offers is one more way to help finance expensive but necessary infrastructures.”

“However, the Board of Trade stands by its recommendations to a parliamentary commission about the importance of ensuring the agreement between the Government of Québec and the Caisse properly define roles and offer clear governance and a straightforward contract,” Michel Leblanc said. “The process must be effective and transparent at every stage of a project. The Board of Trade also reiterates the need to ensure the Caisse’s independence.”

“We need to make sure that rates are consistent with the public transit system throughout the city,” Michel Leblanc said. “The probable creation of the Agence régionale de transport (ART) and the Réseau des transports métropolitains (RTM) should contribute to this.”

About the Board of Trade of Metropolitan Montreal

The Board of Trade of Metropolitan Montreal has over 7,000 members. Its mission is to be the voice of Montréal’s business community and to promote the city’s prosperity. It is involved in key areas of economic development, advocating a philosophy of action based o engagement, credibility, proactivity, collaboration and innovation. The Board of Trade also offers a range of specialized services to individuals and to business of all sizes to support them in their growth at home and abroad.

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