The Government of Québec and Caisse de dépôt et placement du Québec have concluded an agreement on the main terms and conditions of the government’s participation in the Réseau électrique métropolitain (REM) project.
With a CAD 1.28 billion (USD 896 million) 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.
The agreement with the Government of Québec also establishes return thresholds and the mechanism for sharing dividends between la Caisse and the government.
The confirmation of the Government of Québec’s financial participation allows CDPQ Infra to further refine its financial structure.
La Caisse’s investment amounts to CAD 2.67 billion (USD 1.87 billion), or 51% of the project’s share capital. La Caisse has proposed a CAD 1.28 billion investment to the Canadian government, representing 24.5% of the share capital, which is currently under discussion.
“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.
REM involves the construction of a 67 km double tracks of fully automated light rail network with 27 stations, linking downtown Montreal, South Shore, West Island, North Shore and the airport.
It will be the fourth largest automated transportation system in the world after Singapore (82), Dubai (80 km) and Vancouver (68 km).
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