Finance Minister Eric Girard has confirmed the government’s intention to absorb costs estimated at approximately $100 million incurred by the Caisse de depot et placement du Québec (CDPQ) for preparatory studies on the REM project in ballast.
Before his colleagues gathered in the parliamentary committee, Mr. Girard confirmed that the contract concluded with the CDPQ provides for this type of compensation. He assured that “the Government of Quebec always respects its contracts”.
“It was clearly meant that if the project was stopped in one phase, the government would compensate for the studies,” he said, emphasizing “the significant efforts” made so far by the CDPQ.
Mr. Girard said that the project, estimated at 10 billion so far, will be integrated into the Quebec Infrastructure Plan.
Liberal MP Carlos Leitão ruled that the government must compensate the CDPQ for the preparatory work for the Eastern REM.
For his part, PQ MP Martin Ouellet was surprised at the CDPQ’s request. “Taxpayers’ tax dollars will pay for government mistakes for four years,” he said.
The Autorité régionale de transport métropolitain (ARTM), the Ministère des Transports (MTQ), the City of Montreal and the Société de transport de Montréal (STM) will take control of the project, estimated at $10 billion, including the structural plans airlines had been controversial for months.
Ready to go to tenders
Also in the parliamentary committee on Tuesday, the president and CEO of the CDPQ, Charles Émond, told the deputies that the Caisse estimates the cost of the studies carried out to prepare the project at nearly $100 million. According to him, their state of progress makes it possible to move on to the call for tenders stage and they can be used for the rest of the project.
Mr. Émond confirmed that the state-owned company, responsible for managing retirement funds, has decided not to participate in the “new project” announced Monday by Prime Minister François Legault.
“The Caisse does not need to be the solution to all public transport projects,” he said.
He said he was confident that this rebound would not affect the institution’s ability to export this business model where it designs, builds and operates public infrastructure in return for royalties.
Remuneration
Mr. Émond also found himself under heavy fire from questions from Québec solidaire and the Parti québécois concerning his compensation of $ 6.3 million in 2021.
He said his compensation should be competitive. The president of the board of directors of the CDPQ, Jean St-Gelais, meanwhile assured that it was decent.
Mr. St-Gelais explained that Mr. Émond’s compensation includes compensation for income lost when he left his previous job to join the CDPQ. Mr. Émond put that amount at $3.9 million over three years.
More details will follow.