Infrastructure Bank lost $900,000 on shelved climate project: Report

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The Canada Infrastructure Bank acknowledged in an inquiry of ministry tabled in the House of Commons that it lost almost $900,000 in consultant fees on a failed climate project, according to Blacklock’s Reporter.

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The money, totalling $899,318, was for the Lake Erie Connector, which proposed running a 117-km underwater electricity transmission line from Ontario’s Haldimand County to Erie County, Pa.

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The funds were spent on “legal advice,” “financial advice” and “expertise related to electricity transmission.”

In 2021, the bank pledged up to $655 million or 40% of the total cost of the Lake Erie Connector by ITC Investment Holdings.

“This is the bank’s first investment commitment in a transmission project,” the Crown bank said at the time.

“It is another example of the bank’s momentum to quickly implement its $10-billion growth plan.

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“This project will allow Ontario to export clean, non-emitting power to one of the largest power markets in the world.”

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Managers called it a climate-friendly investment, but construction was never started and the project was shelved in 2022.

The House of Commons transport committee has recommended the bank close as a costly failure.

It was launched by Parliament in 2017 with $35 billion in taxpayer financing on a mandate to build new public works by attracting private investment.

The bank’s losses were tabled at the request of Conservative MP Leslyn Lewis, who represents the Haldimand-Norfolk riding.

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