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16h ago

Canada Infrastructure Bank Finalizes $1 Billion Loan for BC Ferries’ Chinese-Built Ferries

Low-interest funding from the Canada Infrastructure Bank has drawn scrutiny over national economic and security interests, prompting a Conservative demand for a parliamentary hearing.

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BC Ferries is buying four new ships from China with loans from the Canada Infrastructure Bank.

Overview

  • The Canada Infrastructure Bank finalized a $1 billion low-interest loan to BC Ferries on March 28 to finance four ferries built by China Merchants Industry Weihai Shipyards despite political objections.
  • BC Ferries expects to save about $650 million in debt interest charges by using the CIB financing instead of private-market borrowing.
  • The new hybrid vessels will increase passenger capacity by 52% and vehicle capacity by 24%, with engines that can run on biodiesel and batteries and potential for full electric conversion.
  • Transport Minister Chrystia Freeland had criticized the ferry purchase without disclosing the CIB financing; no Canadian shipyards submitted bids for the project.
  • Conservative MPs led by transport critic Dan Albas have called for an urgent House of Commons committee hearing to review the loan’s alignment with Canadian manufacturing interests.