2022.EX34.12

Background

This Item takes steps “to establish a credit facility with the Canada Infrastructure Bank [to finance] the Toronto Transit Commission (TTC) procurement of Zero Emission Buses. As part of the overall process, the Canada Infrastructure Bank (CIB) requires the City and the TTC to enter into a non- binding Memorandum of Understanding before a final agreement for a multi-year credit facility is completed.”

Source: City of Toronto

Item Description

This Item has three components. 1) First, the CIB requires the City and the TTC to enter into a non-binding Memorandum of Understanding before a final agreement for a multi-credit facility is completed. The repayment of the loan is based on the calculated operating savings between a diesel bus and a Zero Emission Bus (ZEB). The CIB will provide a lower cost of financing than if the City were to issue debt for the full amount of a ZEB on its own. 2) The TTC will confirm this information before the credit facility is established and provide updates throughout the term of the loan. 3) City Council will amend Municipal code to add entering into conditional loan agreements to commit the City to long term borrowing for capital works in the year 2022.

Source: City of Toronto

Proposed by

Executive Committee