Trudeau is hoping to persuade two dozen representatives of large international pools of capital including central banks, sovereign wealth funds, and pension funds with combined assets of 21 trillion dollars (CDN).
Morneau, Sohi, Trudeau pitched a dozen Canadian investors, Insurance companies, Pension funds, and are hoping to attract billions in to the private sector for infrastructure projects, in order to do this they are going to launch a new bank in 2017. The federal government pledged to pump 35 billion into the bank in hopes that the federal cash will leverage $ 4-5 in private funding.
In addition of the infrastructure bank the government also intends to create a new investment in Canadian Hub for attracting foreign investors, and it plans to relax some restrictions on foreign investments. The federal government is hosting the world’s largest assist manager to organize the event, Trudeau and Fink met with the World Economic Forum and Fink was over heard saying to Trudeau that, there is a lot of confusion in this country as investing goes, the government says Trump is a protectionist and is unpredictable.
Of the promised 35 billion for the bank the government will put 15 billion in cash towards projects that may not provide a full return to federal coffers. Another 20 billion will be available in loans or equity stakes in projects.
The federal NDP on the other hand accuses the liberals of privatizing government infrastructure on the sly, leading to stiff tolls and user fees in order to give the investors a steady return. The conservatives say the government has lost control of spending, with no clear idea about how the infrastructure bank will work.