Ontario Construction News staff writer
Canada Infrastructure Bank (CIB) says it is prepared to make an investment commitment of up to $20 million in the Township of Mapleton’s water and wastewater project.
The township in the southern Ontario community of Wellington is seeking a consortium to design, build, finance, operate and maintain the municipality’s new and existing water and wastewater infrastructure for as long as 20 years. Mapleton will continue to own all existing and new infrastructure assets.
As part of the project, the township will upgrade its water system including building a new water tower, upgrading an existing water pumping station, a wastewater treatment project, and a gravity sanitary collection system.
The township is leading the competitive procurement process including selecting the preferred proponent.
In a news release, CIB says Mapleton’s innovative approach can be considered a pilot project to demonstrate new models for structuring and financing smaller municipal water and wastewater infrastructure projects. “The CIB’s investment commitment will improve the cost of project financing and attract private capital expertise while ensuring appropriate risk transfer to the private sector,” the statement said.
“This is an example of how CIB’s innovative financing model can be a catalyst for new infrastructure in both small and large communities. The investment will be offered in the form of a standardized debt financing package to all proponents during the request for proposals open period. CIB will finalize a credit agreement with the project’s preferred proponent at financial close.”