Canadian Government Executive - Volume 24 - Issue 02

“The Bank is mandat- ed to act as a centre of expertise to gov- ernments on revenue- generating projects, and to gather com- prehensive data about infrastructure projects in Canada.” INTERVIEW in Canada. These efforts will help to im- prove decision-making about infrastruc- ture projects. Q: When do you think a CEO will be in place and the first decisions made on investments in projects? The search for the CEO is active and ongo- ing. The appointment of the first CEO will be made by the government, on the recom- mendation of the Board of Directors. Giv- en the importance of this role, we are not putting a deadline on the selection. It is more important to find the right individual to lead the organization. We have an interim Chief Investment Officer, Bruno Guilmette, who is making great progress in developing the processes for determining our project pipeline and how we will evaluate deals. Bruno was originally appointed to our board as a di- rector. He agreed to temporarily take on the role of interim Chief Investment Of- ficer to quickly ramp up our investment capacity. Keep in mind, the Bank is a start-up. Our immediate focus is on recruiting expert staff for key roles, and establishing neces- sary systems such as payroll and finance. asset. Canada is a world leader in the use of P3s to build and operate infrastructure, with many successful projects across the country. We expect that private sector in- vestors are prepared to go one step further in projects that will be supported by the Bank, and assume additional risks relat- ing to infrastructure usage and revenue. This new model does not replace tradi- tional P3s, nor does it replace traditional government funding, because not all infra- structure projects are suited to generating revenue. We represent a niche option for governments and agencies to consider. Q: What is the process for sub- mitting a project to the Bank for consideration? Provincial, territorial, municipal and In- digenous governments and their agencies, as well as the private sector, can propose potential projects for investment consider- ation. We expect some projects will come to us for consideration through traditional channels for infrastructure projects. We are developing an intake process for un- solicited proposals from the private sector. Q: What are the criteria for a Bank-supported project? To begin with, a project must be in the public interest, able to generate revenue, and within the Canadian government’s priority areas of public transit, green in- frastructure, and trade and transportation. We will then evaluate a project based on more detailed economic and investment criteria, which are under development. Q: How are decisions made about projects? Projects that meet our preliminary criteria will be considered on a case-by-case basis. After conducting due diligence, we will determine whether a specific investment in a project is suitable. Investment recom- mendations will be made by management to our independent Board of Directors. Q: What other roles does the Bank have? The Bank is mandated to act as a centre of expertise to governments on revenue- generating projects, and to gather compre- hensive data about infrastructure projects We are building capabilities in a number of different areas, including risk manage- ment. “In terms of investment decisions, I ex- pect that by the end of 2018 the first deci- sions will be made on projects that the Bank will be investing in.” Q: What attracted you to the role of inaugural Chair of the Bank? It was the opportunity to be involved in starting something new that would help address our country’s real needs for new infrastructure. Bringing together the pub- lic and private sectors to build critically needed infrastructure was something that I couldn’t resist. Q: Looking ahead three to five years, what will success look like for the Bank? Success to me would mean that the Bank is involved in a number of infrastructure projects that would not otherwise be un- derway, because we were able to attract private and institutional investors. Suc- cess would mean that governments and public agencies across Canada would have access to better information and resources to make the best possible infrastructure decisions. Success would mean that the Bank is building a track record as a valued, knowledgeable partner to governments and private-sector investors alike. Q: Where can I find more infor- mation? Please visit our website, www.canadainfra- structurebank.ca. It will be regularly up- dated with news and information on our progress and activities. J anice F ukakusa is the former Chief Administrative Officer and Chief Finan- cial Officer of the Royal Bank of Can- ada, from which she retired in January 2017 following a distinguished 31-year career. She currently serves on the boards of a number of corporate and not-for-profit organizations, including Cineplex, General Growth Properties, The Princess Margaret Cancer Founda- tion, and Wellspring Cancer Founda- tion. She is also the Chair of the Board of Governors of Ryerson University. March/April 2018 // Canadian Government Executive / 27