Ontario Regulation 333/23, established under the Development Corporations Act, creates the Ontario Infrastructure Bank (OIB), which is tasked with promoting infrastructure investment in the province. The regulation outlines the structure, governance, and operational mandate of the OIB. Defined as a corporation without share capital and acting as an agent of the Crown in Ontario, the OIB’s primary goal is to attract investment for public infrastructure projects, particularly from Canadian investors. Its activities encompass evaluating unsolicited proposals from various entities, structuring investment agreements, and providing advisory services related to infrastructure financing.

The governance of the OIB is overseen by a board of directors, comprising between three and eleven members. These members are appointed by the Lieutenant Governor in Council on the recommendation of the Minister of Finance. The board is responsible for managing the corporation’s affairs, designating a chair and vice-chair from among its members. The OIB has a broad mandate, allowing it to invest in diverse infrastructure projects, manage assets, and generate revenue. Its powers include making equity investments, offering loans, and acquiring security interests, although significant financial actions, such as acquiring real estate, require prior approval from the Minister of Finance. Additionally, the regulation specifies that the OIB cannot invest in projects that are not entirely located within Ontario unless it receives ministerial approval, ensuring a focus on local initiatives.

To maintain accountability, the OIB is expected to uphold rigorous financial management, with its revenues designated solely for its objectives. The corporation’s fiscal year runs from April 1 to March 31, requiring it to submit an annual report to the Minister detailing its performance against set targets, which is subsequently tabled in the Assembly. The board must also appoint licensed public accountants for annual audits, and the Auditor General may conduct additional audits as necessary.

The OIB is authorized to hire employees as needed and can provide pension benefits under the Public Service Pension Plan, with remuneration determined by the board and subject to ministerial approval. Certain limitations are imposed on the OIB to protect public interests; it cannot engage in significant financial risk management or borrowing without established protocols and ministerial approval. Furthermore, the regulation restricts engagement with investors whose interests do not align with Ontario’s public interest. To safeguard its directors and officers, the regulation limits personal liability for actions taken in good faith while exercising their powers and duties.

Ontario Regulation 333/23 lays a foundation for the Ontario Infrastructure Bank that is intended to emphasize infrastructure investment as a driver of public benefit. It provides a clear governance structure, operational powers, financial management protocols, and accountability measures, ensuring that the OIB operates effectively and transparently within the framework established by the government of Ontario. By prioritizing local investment and public interest, the regulation aims to foster sustainable infrastructure development across the province.

Ontario (333/23) November 18, 2023