Infrastructure Agency Hands $1.28 Billion Loan to Montreal Rail Project

Infrastructure Agency Hands $1.28 Billion Loan to Montreal Rail Project
Quebec Premier Philippe Couillard speaks during a news conference in Montreal on Feb. 8, 2018 where he announced details of new automated light rail system for the Montreal region. The Canada Infrastructure Bank will provide a loan to help build it. The Canadian Press/Graham Hughes
The Canadian Press
Updated:

OTTAWA—A nascent federal agency designed to find new ways to finance construction of transit systems is making its first investment in a multibillion-dollar electric rail system in Montreal.

The Canada Infrastructure Bank will provide a $1.28 billion loan to help build the $6.3 billion system largely managed and funded by Quebec’s pension regime, with interest rates rising from 1 percent to 3 percent over the 15-year term.