The taxpayer-backed Canada Infrastructure Bank has acknowledged approving a $206 million loan with unusually flexible terms to a Nova Scotia wind project tied to individuals with Liberal Party connections, including a repayment structure that delays payments until the venture becomes profitable.Blacklock's Reporter says CEO Ehren Cory told the Commons transport committee the financing for the Mersey River Wind Project was intentionally structured to absorb risk, allowing operators to postpone repayments if revenues take years to materialize. He described the deal as supporting a “positive business idea,” while maintaining the bank operates transparently.The project, located near Hunts Point, N.S., was part of a broader $231 million funding package that also included support from Natural Resources Canada. Its ownership group includes relatives and associates of several current and former Liberal figures, including ties to ex-MPs and party leadership in Nova Scotia.Conservative MP Leslyn Lewis challenged the bank’s refusal to disclose key financial details such as the loan’s interest rate, arguing any project receiving public funds should face heightened scrutiny. Cory declined to provide specifics, saying individual loan terms are not made public.While Cory insisted the loan benefits Nova Scotians by expanding renewable energy, he conceded the terms are not strictly commercial. Instead, the structure is designed to share risk with developers, meaning repayment timelines can stretch depending on when, or if, the project turns a profit..Bloc Québécois MP Xavier Barsalou-Duval accused the bank of effectively directing taxpayer money toward Liberal insiders, questioning whether political connections influenced the decision. Cory rejected the claim, stating all investments are based on project merit.Conservative MP Philip Lawrence pressed bank officials on whether they were aware of the political ties before approving the loan. After repeated questioning, general counsel Frédéric Duguay acknowledged the individuals involved had previously held public office and that due diligence identified those connections, though he maintained the bank operates at arm’s length from government.The exchange grew heated as Opposition MPs accused the bank of a lack of transparency and accountability, while Liberal MP Mike Kelloway pushed back, criticizing what he described as insinuations that economic development in Atlantic Canada depends on political connections.Cory has previously testified that the bank routinely offers long-term, flexible financing for climate-related projects, with repayment schedules that can extend decades and only begin once projects generate revenue, underscoring the risk-sharing model now under scrutiny.
