Question Period Note: Canada Infrastructure Bank and BC Ferries

What was the Canada Infrastructure Bank’s involvement in BC Ferries’ procurement from China?

• The Canada Infrastructure Bank (CIB) plays a critical role in supporting infrastructure that Canadians rely on—from clean energy and trade corridors to transit and housing infrastructure.

• Since 2024, the CIB has been working with BC Ferries to help modernize its fleet and accelerate the transition to cleaner, hybrid-electric vessels. The CIB is financing approximately one-third of the vessel costs and more than half of the terminal electrification upgrades.

• Procurement decisions are made independently by BC Ferries. This government has signalled its disappointment in this decision and I have asked the CIB to prioritize projects that use Canadian materials, services, and suppliers.

• As stated by the Prime Minister, this government will introduce a new Buy Canadian policy applying to all Crown Corporations, including the CIB.

• The Canada Infrastructure Bank (CIB) has made two investments in support of modernizing BC Ferry Services Inc.’s (BC Ferries) fleet and terminal renewal. The CIB’s involvement is as follows:

  • In May 2024, the CIB reached financial close on a $75 million loan to BC Ferries to help finance the purchase of four zero-emission ferries and install the required charging infrastructure. The CIB’s loan covers the higher upfront capital costs of the ferries compared to diesel, including charging infrastructure, helping to accelerate the electrification of one of the world’s largest ferry networks with environmentally friendly and quieter vessels. Additional details include:

    • Repayment of the investment will come from standard operating revenues comprised of passenger fares and retail revenues. The investment is the CIB’s first in zero-emission ferries, expanding its transit portfolio beyond zero-emission buses.
    • The four Island Class vessels currently under construction will be delivered in two phases, with the first two ferries expected to arrive in British Columbia in spring 2026, and the remaining two ferries in the fall 2026, with all four entering service by 2027. The new vessels will provide two-ship service on the routes connecting Nanaimo Harbour - Gabriola Island and Campbell River - Quadra Island.
    • These four vessels are being constructed by Damen Shipyards, a Dutch company.

  • On March 28, 2025, the CIB and BC Ferries reached financial close on a $1 billion credit agreement to support BC Ferries’ New Major Vessels (NMV) project.

    • The loan is allocated in two tranches: up to $690 million toward vessels costs; and up to $310 million toward electrification infrastructure.
    • On May 22, 2025, the CIB disbursed a first installment of $133 million to BC Ferries.
    • On June 10, 2025, BC Ferries announced it had selected China Merchants Industry Weihai Shipyards to build four NMVs following a rigorous global procurement process that included a public Request for Proposals, comprehensive bid evaluations, international site visits, and independent third-party reference checks.
    • BC Ferries reported that the procurement process yielded no bids from Canadian shipyards. The four new hybrid ferries are to be delivered between 2029 and 2031.
    • Details of the CIB’s investment were published through regulatory filing requirements on June 13, 2025, on SEDAR+ and in BC Ferries’ Annual Report entitled Management’s Discussion & Analysis of Financial Condition and Financial Performance for the fiscal year ended March 31, 2025.

• While the vessels are being assembled offshore, the NMVs project is expected to generate significant economic benefits in Canada. According to BC Ferries:

  • Over $230 million will be invested locally in maintenance and refits over the first 10 years of service;
  • More than $1 billion will be invested over the vessels’ 45-year service life; and
  • The new fleet is expected to contribute 17,200 job-years, $1.2 billion in wages, and $2.2 billion to British Columbia’s GDP.

• Since the project announcement, the Government of Canada has taken action to ensure Crown corporations, including the CIB, align their activities with the broader economic objectives of championing Canadian companies, suppliers, and workers.

  • On August 29, 2025, Minister Robertson wrote the CIB to encourage the Bank to invest in projects that prioritize Canadian materials and support Canadian construction services and other domestic suppliers. Where this is not possible, the Minister encourages the Bank to invest in projects that prioritize suppliers from reliable trading partners who open their procurements to Canadian companies, consistent with the Interim Policy on Reciprocal Procurement.
  • On September 5, 2025, the Prime Minister announced a series of strategic measures to support workers and businesses in those sectors most impacted by US tariffs and trade disruptions, including the upcoming Buy Canadian Policy that will ensure all federal funding streams and Crown corporations buy from Canadian suppliers or require local content when domestic suppliers are unavailable.

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