The Canada Infrastructure Bank (CIB) has announced an investment commitment of up to $20 million for a water and wastewater project in the Township of Mapleton.
The project will expand access to safe drinking water and capacity for the treatment of wastewater for up to 20 years for the Township of Mapleton, which is located in the southern Ontario County of Wellington.
“The approach we are using will ensure Mapleton’s water and wastewater needs will be met safely, efficiently, and affordably,” said Gregg Davidson, mayor of the Township of Mapleton. “We are proceeding with a competitive procurement process and are very pleased to have the Canada Infrastructure Bank involved to provide an innovative financing option. We hope that our approach to improve our infrastructure will create best practices for other municipalities to modernize their water and wastewater systems.”
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.
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.
According to CIB, 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.
“This is an exciting partnership between the Township of Mapleton and Canada Infrastructure Bank,” said Pierre Lavallée, president and chief executive officer of the Canada Infrastructure Bank. “CIB is a new model of federal support for projects including green infrastructure. Our innovative financing approach will help Mapleton invest in new, expanded, and sustainable public water and wastewater facilities.”
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. 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.
I’m sure the residents of Mapleton will be overjoyed to have their utilities upgraded to a modern standard. Well done to the Canada Infrastructure Bank for committing $20m to the project.