A Nova Scotia wind farm with political connections required more than $200 million in public financing after private lenders declined to fund the project due to what officials describe as elevated financial risks.The disclosure was made by Canada Infrastructure Bank CEO Ehren Cory, who told MPs the Mersey River Wind Project could not proceed without government-backed support.“The project faced unique revenue and structural risks, particularly around securing and retaining customers,” Cory wrote in a letter to the Commons transport committee. “Given these risks, traditional private lenders alone were unwilling to provide the required financing.”Cory said the bank stepped in with $206 million in financing to “de-risk” the project and attract additional private capital, allowing construction to move forward.The wind farm, planned for Crown land near Hunts Point, Nova Scotia, has drawn scrutiny due to the backgrounds of individuals involved in its development, including relatives of former Liberal Party figures.During committee hearings, Conservative MPs questioned whether taxpayers were being exposed to excessive risk while private investors benefited from government-backed financing..Conservative MP Leslyn Lewis raised concerns about whether the project would have proceeded without federal support.“The taxpayers bear the entire risk of this project,” Lewis said, adding that Canadians “deserve to know why” private capital would not fully fund the venture.She also indicated she would pursue further document disclosure on the financing arrangement.Project representatives testified that private capital was involved in the deal, though they said specific details were confidential. Daniel Roscoe, CEO of Roswell Development Inc., said the project did seek private financing.Another investor, Jeff Rodgers of Slate Asset Management, said there was “substantial private capital” involved in closing the deal, but did not provide details due to commercial confidentiality.Conservative MP Philip Lawrence pressed witnesses on why basic financing questions could not be answered publicly.“You received over $200 million Canadian tax dollars and you can’t answer a simple question,” he said, accusing witnesses of being evasive and suggesting political sensitivities were behind the lack of transparency..Rodgers responded that the Canada Infrastructure Bank retains certain oversight rights over project proceeds but declined to elaborate further.The infrastructure bank has not publicly disclosed the full terms of its financing agreement. However, Cory previously told senators the bank’s loans are typically long-term, often spanning 17 to 18 years, and may only be repaid once projects become profitable.“That’s the kind of flexibility, taxpayer money,” Cory said in earlier testimony. “We help them share in the risks.”
