Financing
Cobequid Pass was built as a public-private partnership that allowed the government to make an affordable financial contribution to build this much-needed highway.
- Construction cost: $112.9 million
- Provincial contribution: $27.5 million
- Federal contribution: 27.5 million
- $5.5 million in subordinated notes invested from the provincial pension fund
- $60.9 million provided by the sale of bonds to private investors underwritten by Newcourt Credit Group of Toronto
- Toll revenues over 30 years will provide the investors a return; pay for toll operations; cover annual maintenance and contribute to long-term maintenance.
The money borrowed from the private sector by the Highway 104 Western Alignment Corporation through Newcourt Credit Group is borrowed on the security of tolls.
|
HOW THE AGREEMENTS WORK |
||
|
FUNDING |
AMOUNT |
PROVIDED BY |
|
Senior Bond Issue |
$51.0 million |
Canada Life* |
|
Junior Bond Issue |
$9.9 million |
Canada Life* |
|
Subordinate Notes |
$5.5 million |
Province of Nova Scotia |
|
Total Borrowed |
$66.4 million |
|
|
Equity |
$1 |
Province of Nova Scotia |
|
Interest Earning |
Amount based on Interest rates |
From all investments and banks accounts |
|
Federal Funding |
$27.5 million |
Government of Canada |
|
Provincial Funding |
$27.5 million |
Province of Nova Scotia |
|
*Canada Life act as the Bondholder’s Representative. |
||
Notes:
Senior Bond Issue was retired October 31, 2021
Junior Bond Issue was retired September 30, 2007
Subordinate Notes were retired September 30, 1999
Highway 104 Western Alignment Corporation
