The Canada Infrastructure Bank (CIB) is tracking toward a significant investment shortfall that could undermine the country’s ambitious infrastructure renewal plans, according to a sobering new report from the Parliamentary Budget Officer (PBO). Despite lofty promises of catalyzing economic growth through strategic infrastructure investments, the crown corporation appears poised to fall approximately $20 billion short of its mandated targets by 2028.
Established in 2017 with considerable fanfare, the CIB was granted $35 billion to leverage private capital for transformative infrastructure projects across Canada. The bank’s mission—to bridge the gap between public needs and private investment—represented a cornerstone of the federal government’s economic strategy. However, as revealed in the PBO’s detailed financial analysis, the institution has committed just $10.9 billion to date, with actual disbursements trailing even further behind at a mere $5.3 billion.
“The current trajectory suggests the CIB will achieve only $15.4 billion in investments by its 2028 deadline,” notes Parliamentary Budget Officer Yves Giroux. “This represents a 56 percent shortfall from the original mandate, raising serious questions about the effectiveness of the bank’s investment model.”
The report highlights several systemic challenges hampering the bank’s performance. Chief among these is the slower-than-anticipated pace of project development, with many initiatives facing regulatory hurdles, jurisdictional complications, and extended due diligence processes. The CIB’s emphasis on complex, large-scale projects—while potentially transformative—has resulted in extended timelines that conflict with its investment deadlines.
The bank’s underperformance has drawn sharp criticism from across the political spectrum. Conservative infrastructure critic Andrew Scheer has called the CIB “a colossal failure,” while NDP finance critic Daniel Blaikie points to the shortfall as evidence that “public-private partnerships often fail to deliver value for taxpayers.”
In response to the PBO report, the CIB defended its record, noting that infrastructure investments inherently require extended timeframes. “Major infrastructure projects don’t materialize overnight,” stated CIB CEO Ehren Cory. “Our investment pipeline remains robust, and we’re confident in our ability to accelerate deployments in the coming years.”
The bank’s defenders also highlight several success stories, including its $655 million investment in Montreal’s Réseau Express Métropolitain (REM) light rail network and $300 million toward expanding broadband connectivity in rural and indigenous communities. These projects, they argue, demonstrate the CIB’s potential to drive economic growth when properly executed.
Provinces and municipalities, meanwhile, express frustration with the CIB’s complex approval processes. “We’ve submitted multiple high-priority projects that align perfectly with the bank’s mandate, yet we’ve encountered significant delays in receiving definitive responses,” revealed one provincial infrastructure minister who requested anonymity to speak candidly.
Financial analysts suggest the bank’s investment model may require recalibration. “The fundamental tension within the CIB is attempting to satisfy both public policy objectives and commercial return requirements,” explains Dr. Matti Siemiatycki, infrastructure expert at the University of Toronto. “This dual mandate creates inherent challenges in project selection and execution.”
The implications for Canada’s broader infrastructure agenda are significant. With an estimated $300 billion infrastructure deficit nationwide, the CIB was intended to play a pivotal role in addressing critical gaps in transportation, energy, and community infrastructure. Its underperformance may necessitate alternative approaches to meet these pressing needs.
As policymakers digest the PBO’s findings, the question remains: can the Canada Infrastructure Bank overcome its structural limitations to fulfill its promise, or has the time come to fundamentally rethink our approach to infrastructure financing in an era of fiscal constraints? The answer will shape Canada’s built environment—and economic competitiveness—for generations to come.
