Canada Infrastructure Bank (CIB) announced an investment commitment of up to $20 million in the Township of Mapleton’s water and wastewater project. The Township is seeking a consortium to design, build, finance, operate and maintain the municipality’s new and existing water and wastewater infrastructure for up to 20 years. Mapleton will continue to own all existing and new infrastructure assets.
This partnership demonstrates how the CIB can enable the public and private sectors to improve infrastructure delivery in Canada and help the Township of Mapleton continue to provide households and businesses access to clean drinking water using modern infrastructure.
As part of the project, the Township will upgrade its water system including the building of a new water tower, upgrading an existing water pumping station, a wastewater treatment project, and a gravity sanitary collection system.
The Township of Mapleton is leading the competitive procurement process including selecting the preferred proponent. Mapleton will focus on its core role as asset owner and water utility regulator and will hold the selected proponent accountable to deliver the water and wastewater infrastructure.
Mapleton’s innovative approach can be considered a pilot project to demonstrate new models for structuring and financing smaller municipal water and wastewater infrastructure projects.
The CIB’s investment commitment will improve the cost of project financing and attract private capital expertise while ensuring appropriate risk transfer to the private sector. This is an example of how CIB’s innovative financing model can be a catalyst for new infrastructure in both small and large communities.
The investment will be offered in the form of a standardized debt financing package to all proponents during the request for proposals open period. CIB will finalize a credit agreement with the project’s Preferred Proponent at Financial Close.