He says it’s encouraging to see domestic infrastructure projects in Canada receive attention from pension funds but cautioned that depending on the scope and cost of these proposals, it could limit the pool of investors available to participate.
“It’s not for everybody. You need a certain, specific sort of mindset and a strategy mandate to really be able to invest in these projects.”
An October report from the Canadian Broadcasting Corp. found a planned high-speed train linking Quebec City and Toronto was officially in the works. One of the proposed bids for the project belongs to a group of investors that includes the infrastructure arm of the Caisse de dépôt et placement du Québec.
According to the report, three bids, including the one from the Caisse’s group, were selected by the government for the project that’s estimated to cost as much as $80 billion.
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In July, the Caisse and its group, known as Cadence, officially submitted its proposal and announced the addition of Air Canada and SNCF Voyageurs, a subsidiary of France’s national state-owned railway company, as investors. The group also includes AtkinsRéalis Canada Inc. and Keolis Canada. A representative for Cadence declined a request for comment.
In addition to the touted railway project, Ahmed says he’s noticed infrastructure investments in areas of interest like fibre optics, electrification projects, battery storage and renewable energy. He adds public sector projects involving institutional capital are complicated due to the time restraints.
“The procurement process I think to some extent scares people, because they can’t wait for 18 months [to] 24 months to get approval on those projects, they have to deploy capital.”
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The infrastructure landscape has evolved quickly, he notes, with institutional investors expressing increased interest in energy transition programs that so far aren’t taking away from traditional infrastructure. “I really strongly believe that we’re stepping into . . . what I would call an infrastructure super cycle for the next decade or so, maybe longer.”
The renewable energy trend doesn’t run against traditional infrastructure, he notes, since the development of these green projects requires investment in upgrades to existing frameworks for industries.
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