Question Period Note: RÉSEAU EXPRESS MÉTROPOLITAIN

Back to search

About

Reference number:
INFC-012021-INFC-0015
Date received:
Sep 21, 2020
Organization:
Department of Housing, Infrastructure and Communities
Name of Minister:
McKenna, Catherine (Hon.)
Title of Minister:
Minister of Infrastructure and Communities

Issue/Question:

Status of the federal funding for the Réseau Express Métropolitain.

Suggested Response:

  • The Government is committed to supporting investments in public infrastructure that create efficient, affordable and sustainable transit services.

  • Construction of the Réseau express métropolitain is underway in Montréal. Once complete, this automated electric light rail system will contribute to decreasing greenhouse gases and will integrate with existing systems and infrastructure, like the metro, commuter trains and buses and the new Samuel De Champlain Bridge.

  • On August 22, 2018, the Canada Infrastructure Bank made its first investment of $1.28 billion toward the project, and released specific details of the financing structure with partners.

  • This important milestone demonstrates how the Canada Infrastructure Bank can bring public and private sector partners together to benefit Canadians.

Background:

  • On September 28, 2018, Canada Infrastructure Bank (CIB) entered into a credit agreement with Réseau express métropolitain Inc. The first payment of $279 million was made on November 30, 2018, the second payment for $270 million was made on March 1, 2019, the third payment for $230 million was made on June 1, 2019, and the remaining payments will be made in fiscal year 2019-20 and 2020-21 as outlined in the CIB’s unaudited quarterly financial statements.

  • On August 22, 2018, CIB and CDPQ Infra, a wholly owned subsidiary of Caisse de dépôt et placement du Québec (CDPQ), reached a business agreement on the investment of $1.28 billion by the CIB in the REM in Montreal. The investment will take the form of a 15-year senior secured loan at a rate starting at 1% escalating to 3% over the term of the loan.

  • On February 8, 2018, CDPQ Infra announced the selected consortia for the project’s two main contracts, as well as an increase of $300 million to the total project cost, which is now $6.7 billion.

  • On June 15, 2017, the Prime Minister announced a federal commitment of up to $1.283 billion in support of the REM project.

  • On March 28, 2017, the Government of Québec announced its support for the project with a $1.283 billion commitment.

  • The project, initially proposed on April 22, 2016, is one of the largest automated transport network and the largest transit project undertaken in Quebec in the last 50 years.

Additional Information:

None