The committee studied the Mersey River wind farm project and the role of the Canada Infrastructure Bank (CIB), hearing from CIB CEO Ehren Cory, General Counsel Frédéric Duguay, and Managing Director Sashen Guneratna, followed by Halifax Port Authority CEO Fulvio Fracassi and St. Lawrence Seaway Management Corporation Vice-President Luc Boisclair on port and seaway infrastructure.
Ehren Cory stated that the CIB’s $206.4 million loan to the Mersey River wind farm was made on commercial terms at a market interest rate to address unique risks from the project’s renewable-to-retail program, which allows consumers to buy clean power directly, introducing competition in Nova Scotia. He emphasized that the CIB operates at arm’s length from government, conducted rigorous due diligence including conflict-of-interest checks, and found no material issues, and that the loan is being repaid with interest, with the CIB covering all its operating costs since July 2024. He noted that the project supports Nova Scotia’s energy transition and that the CIB did not consult ministers about the loan, only informing local MPs of the public announcement.
Frédéric Duguay explained that the CIB follows FINTRAC-based due diligence guidelines, including know-your-client checks on principals, and that holding past public office does not automatically indicate higher risk, especially when it was more than five years prior. He confirmed that the CIB identified that some individuals previously held public office but assessed them as low risk, and that enhanced due diligence would involve open-source searches for adverse media or litigation, which did not apply here.
Sashen Guneratna highlighted that the Mersey River project provides consumer choice and competition in Nova Scotia’s electricity market, and that the CIB’s broader investments in the province—including six other wind projects, a transmission intertie, and battery storage—support clean, reliable energy and create jobs, with indigenous communities as owners in many projects. He noted that the project helps ratepayers by enabling direct purchase of renewable energy at competitive rates.
Fulvio Fracassi described the Port of Halifax as a deepwater port capable of handling ultra-large ships, generating $4.87 billion in annual economic output and supporting 25,000 jobs, with 17 container services connecting to over 150 countries. He advocated for investment in the south end container terminal expansion to berth two ultra-large vessels simultaneously, increasing capacity to 1.3 million TEUs, and stressed that the trade diversification corridors fund is key to enhancing the Atlantic trade corridor and preventing ships from bypassing Canada for U.S. ports.
Luc Boisclair outlined the St. Lawrence Seaway’s role in moving 37 million tonnes of goods in 2025, supporting $66 billion in economic activity, and proposed an “inland advantage” project to reintroduce containerized short-sea shipping, move energy via the seaway, and extend winter operations. He noted that wharf 18 in Port Colborne is a shovel-ready project requiring additional funding beyond the $22.6 million from the national trade corridors fund, and that the seaway has capacity to double its volume, but faces challenges from aging icebreakers and water level variability due to climate change.
During the meeting, Conservative members pressed Cory and Duguay on whether the CIB knew the project involved individuals with Liberal Party connections, including former MPs and their relatives, and demanded disclosure of the loan’s interest rate and repayment terms. Cory and Duguay maintained that the CIB’s due diligence followed standard financial sector practices, that no conflicts of interest were found, and that the interest rate was market-competitive but confidential. Liberal members defended the project, arguing it benefits Nova Scotians by breaking a monopoly, lowering power costs, and creating jobs, with MP Jessica Fancy noting that 50,000 customers have already signed up. The committee did not hold any procedural votes or motions during this meeting.
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