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Bruce McCuaig

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Senate pushes forward Infrastructure Bank

Wednesday, the Senate passed legislation that would allow for the creation of the Infrastructure Bank. According to the bill passed, this corporation’s purpose is to “invest in, and seek to attract private sector and institutional investments to, revenue-generating infrastructure projects.”

Bill C-44 allows government to implement certain provisions to the federal budget, including making room for the much-talked-about Infrastructure Bank. The bank will help structure proposals and negotiate agreements for infrastructure projects across the country. They will receive unsolicited proposals from the private sector or institutional investors, provide advice to all levels of government, and monitor the state of infrastructure in Canada.

As Bruce McCuaig, Executive Advisor of the Privy Council, said Tuesday at a seminar on alternative financing, “If we were to build all infrastructure on public balance sheets, we wouldn’t be able to get there.”

The seminar McCuaig spoke at Tuesday was hosted by the Transit Alliance, a non-political organization for those who work in the transit and infrastructure industry, students, or those interested in transit and transit planning in cities across Southern Ontario. Much of the discussion centered around whether or not the Infrastructure Bank is going to be useful for municipalities.

The biggest challenge is that Bill C-44 only outlines the recommendations and the broad powers the Infrastructure Bank holds. There are still quite a few details to work out, for example how the Infrastructure Bank will balance public and private interests. The general consensus is that the bank will provide opportunities for municipalities, but that it should focus on projects that are having a harder time finding funding.

As the bank starts to develop and grow, more information will become available.

What do you think of the Infrastructure Bank? Let us know in the comments below!

Transit Alliance: financing infrastructure via P3 and AFP

Ontario has an infrastructure deficit — there is a lot of infrastructure that still needs to be developed, but very little money is available. This creates a bit of a challenge. “If we were to build all infrastructure on public balance sheets, we wouldn’t be able to get there,” said Bruce McCuaig, Executive Advisor of Privy Council Office. “Money isn’t free.”

McCuaig was a special guest at the Transit Alliance’s seminar on alternative financing and public-private partnerships. Over 80 people attended the June 20 event in hopes of learning more about the Infrastructure Bank and alternative financing models that can help push municipal projects forward.

The morning seminar began with a fireside chat between McCuaig, KPMG partner Will Lipson, and Transit Alliance Chair Brian Crombie. The conversation centered around the Infrastructure Bank, a crown corporation that will provide low-cost financing for new infrastructure projects. McCuaig is set to help launch the Infrastructure Bank through the Privy Council.

“It’s about finding the best financial model for the project,” McCuaig said. “Each on has different needs.”

Transit will play a big part of the portfolio, although clean water was also mentioned numerous times throughout the discussion. McCuaig stressed that a balance will be needed between public interest and independence within the crown corporation, and that decisions should be made using evidence-based analysis.

The Infrastructure Bank will be complimentary to Infrastructure Ontario, Infrastructure Canada, and other private agencies. KPMG said the corporation will bring about numerous opportunities for municipalities, providing more financing options than before.

“The government has been quite wise in implementing the bank,” Lipson said.

After the fireside chat, Crombie moderated a second panel that dealt largely with financing for smaller municipal projects. Special guests on the panel included Rob Pattison, SVP, LRT, Infrastructure Ontario; Don Dinnin, VP Procurement Services at Metrolinx; Olivia MacAngus, VP Corporate Development at Plenary Group; and Omer Malik, Vice President Project Financing at Stonebridge Financial Corporation.

Each member of the panel is involved in public-private partnerships or alternative financing, and believes that innovation and creativity are key when it comes to municipal projects. For most, the Infrastructure Bank is a unique opportunity, but not something to depend on. MacAngus and Malik both think there is too much unknown about the Infrastructure Bank. “We don’t need another traditional lender,” Malik said. “It should focus on a gap, where larger equity funds aren’t interested.”

Dinnin suggested the use of an agency such as the Infrastructure Bank to help spearhead the relief line in Toronto. Metrolinx, he said, has a number of funded projects using public-private partnerships, but maybe the Infrastructure Bank can fill the rest of that gap. “There is always more than one way to do something,” he said.

The collective solution to municipal infrastructure, as suggested by the panel, is hybrid-financing models and innovative thinking — partnering with the right investors to see your project completed.

The goal of alternative financing and public-private partnerships is to build and develop a project on time and on budget. According to Pattison of Infrastructure Ontario, the worst thing someone can do is drag out the construction phase.

The seminar also included a networking opportunity, where business and municipal leaders were able to approach these financial firms to discuss their personal projects and seek advice (or offer potential solutions).

“Expertise should always be evolving,” Pattison said.

Here are some photos from the event:

[Best_Wordpress_Gallery id=”7″ gal_title=”P3 Seminar June 20″]

More photos to come.

Photographs taken by Ethan Helfrich.

Building community

The Women’s Post office is a hub of activity, but unlike most media companies our work revolves around the stories we write and the charity work that our publisher, Sarah Thomson, is focused on at Civic Alliance and the Transit Alliance. Readers will notice that while we carry the usual fashion and passion stories we also write about city building – creating strong healthy communities. We believe that the future is shaped by the passion and commitment we put into building community and that each one of us has a duty to give back to the community. And we hope that you the reader can share in our passion.

This year the Transit Alliance is working on a series of seminars focused on educating our public servants at the municipal level with the goal in to update the entrenched procedures and processes that are no longer competitive or productive. The focus will be to share new ideas, and new ways to structure our large infrastructure projects in order to ensure efficiencies.

To that end our first seminar on Feb. 16, 2016 will involve a lot of terrific infrastructure leaders donating their times to moving our region forward. With the help of terrific leaders like Bert Clark, CEO of Infrastructure Ontario and Bruce McCuaig, CEO of Metrolinx who are both committed to building our communities. Tickets are available here.

The Transit Alliance will once again host the Toronto Region Vision Summit in April our goal is to develop a 50 year vision for the entire region. If you would like to take part early-bird tickets are now on sale here.

The Transit Alliance is also working on a series of education campaigns. Each campaign is focused on a key issue essential to unlocking gridlock and creating stronger and safer communities. The campaigns cover the need to fund infrastructure with user fees like tolls; the importance of the smart relief subway line; and updating our safety standards for road hardware and making our roads safer.  If you would like to help the Transit Alliance, or take part in our initiatives, please become a member here.

This year Civic Alliance will be focused on educating the public on the environment and the importance of lowering our carbon footprint in housing, as well as the use of electric vehicles.

We hope you enjoy the work we are doing and will join us in our effort to build a safer, stronger Greater Toronto and Hamilton Area.

Humility over hubris will fix the TTC

There is a systemic issue that has plagued the TTC for decades.  Historically the TTC has lacked strong leadership, with CEOs being fired every few years,  few of them have had the time or inclination to tackle the managers or hold them accountable for their actions.

Last week a few columnists and politicians hinted that CEO of the TTC, Andy Byford, was to blame for the Spadina extension overruns.   Like the Red Queen from Alice in Wonderland who shouts “off with his head” they wanted a simple solution without understanding the complexity of the problem.  The TTC’s main mandate is to deliver good service efficiently and Mr. Byford has done exceptionally well on that front, despite inheriting an organization with a long history of poor accountability and mismanagement.

Consider the recent auditor’s report that found the TTC had not been monitoring the use and maintenance of its non-revenue fleet going as far back as 2005. Take a closer look at the report and what becomes obvious is the systemic issues that CEO Andy Byford has inherited.   The auditor’s report demonstrated that accountability has not been part of the TTC’s culture for decades. To expect our new CEO to do a complete overhaul of the system in under 5 years is ludicrous.

It’s easy to criticize when it comes to failures, but much harder to understand what caused the failures.  The real challenge facing the TTC is to change the culture of entitlement and unaccountability that fills the management ranks. But Byford has taken action. He’s reviewed the TTC infrastructure department, fired those responsible for the Spadina extension overruns, and admitted that he needs help and that the TTC infrastructure department can’t handle the project. Not only did this take balls, but it took humility – exactly the trait needed to bring real change to the TTC.

Mr. Byford’s firing of the Spadina extension project managers not only tells Toronto he’s taking action but it has sent a huge message to all TTC employees –  that no matter how high ranking someone is, they will be accountable for their actions.  This is a message that many TTC employees, frustrated with the lack of accountability and the attitude of entitlement within TTC management, needed to hear. In Byford, TTC now has a leader with humility, who is determined to give the public the best service possible while at the same time weed out the hubris that will always cause an organization to fail.

Where does the TTC infrastructure department go from here?

The answer is obvious to those who work in the industry — the contractors and engineers — who have worked with the TTC in the past and now refuse to even bid on most TTC projects, to those who have spent the past decade quietly complaining to anyone who would listen, about the ineptitude of the TTC infrastructure department.  The solution the contractors, tradespeople and engineering firms suggest is to turn all the large transit projects that TTC has in their plans over to Metrolinx.

Metrolinx is the provincial transit body responsible for building transit infrastructure – most recently, the Union-Pearson Express (delivered on time and on budget).  Under the leadership of CEO, Bruce McCuaig, Metrolinx has steered its large projects through Infrastructure Ontario which has developed an efficient process (with a 97% success rate) to manage big infrastructure projects.  Add to this the fact that McCuaig has attracted some of the best in the field, and the humility that McCuaig brings to his role as CEO of Metrolinx and it is easy to see why so many in the industry see them as the great solution to Toronto’s infrastructure problems.

A partnership between Metrolinx and the TTC is the best solution for Toronto. It would allow the TTC to focus on delivering excellent service efficiently, while at the same time deliver the expertise that Metrolinx has to all our future transit expansion plans.

Transit integration moves forward for GTHA

Today GO Transit and the TTC announced a partnership on a pilot project to give metropass holders the opportunity to purchase a new monthly GO fare sticker for $60 that can be used  for unlimited travel between Exhibition, Union and Danforth GO Stations. It will begin on Feb 1, 2015. The new stickers will go on sale on Jan. 26, at Exhibition, Union and Danforth GO Stations.

CEO of Metrolinx, Bruce McCuaig said, “This project is more than about saving time. It’s about working together to provide the best transit service”

The goal is to attract people to use different transit options, and to inform them of all the transit choices that are available to them. Transit officials say this will save commuters between 10 to 15 minutes per trip during rush hour.

Ontario Transportation Minister, Steven Del Duca announced that the project would last one year, and offer Metrolinx a lot of information to analyse in order to help them with long-term planning.

Here is how to get the sticker

1. Bring your TTC Metropass (for the current or upcoming month) to the ticket counter at Exhibition, Union or Danforth GO Station.

2. A GO station Attendant will attach the GO fare sticker to your valid TTC Metropass.

Safe travels.