MONTRÉAL, March 28, 2017 /CNW Telbec/ - La Caisse is very pleased to have concluded an agreement with the Government of Québec on the main terms and conditions of the government's participation in the Réseau électrique métropolitain (REM) project. With a $1.28-billion commitment representing 24.5% of the total equity, the government becomes a minority shareholder in the project and, as such, will earn returns on its investment.
"We very much welcome the Government of Québec's commitment to the REM, a project that will improve the daily commute for hundreds of thousands of people, boost Montréal's overall competitiveness, and have positive impacts on the environment from the first days of the project. Today we are moving a significant step closer to delivering this major electric transit project, which is so important for Montréal and Québec as a whole," said Michael Sabia, President and Chief Executive Officer of la Caisse.
Confirmation of the Government of Québec's financial participation allows CDPQ Infra to further refine its financial structure. La Caisse's investment amounts to $2.67 billion, or 51% of the project's share capital. La Caisse has proposed a $1.28-billion investment to the Canadian government, representing 24.5% of the share capital, which is currently under discussion.
The agreement with the Government of Québec also establishes return thresholds and the mechanism for sharing dividends between la Caisse and the government. A financial information note explaining these elements is available on the Caisse and CDPQ Infra websites at: http://www.cdpq.com/sites/default/files/medias/en/nouvelles-medias/communiques/documents/dh_170328_note-budget-rem_en.pdf
About CDPQ Infra
CDPQ Infra is a wholly-owned subsidiary of Caisse de dépôt et placement du Québec and is responsible for developing and operating infrastructure projects, including the Réseau électrique métropolitain (REM). The REM is a new, integrated 67-km public transit network intended to link downtown Montréal, the South Shore, the West Island (Sainte-Anne-de-Bellevue), the North Shore (Laval and Deux-Montagnes) and the airport through an entirely automated and electric light rail transit (LRT) system. For more information on CDPQ Infra, visit cdpqinfra.com, follow us on Twitter @CDPQInfra or consult our Facebook pages. For more information on the REM.