DOCSLIB.ORG

3.06: Infrastructure Ontario's Loans Program

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
3.06: Infrastructure Ontario's Loans Program Chapter 3 Ministry of Economic Development, Employment and Infrastructure Section 3.06 Infrastructure Ontario’s Loans Program History of Infrastructure Ontario Background and the Loans Program The Loans Program had been lending infrastruc- Ontario Infrastructure and Lands Corporation, com- ture funds to municipalities under several other monly referred to as Infrastructure Ontario (IO), is a corporate structures before IO was created in Crown corporation established by the Ontario Infra- 2011. In 2004, the Ontario Strategic Infrastruc- structure and Lands Corporation Act, 2011 (Act). IO ture Financing Authority (OSIFA) was formed to is governed by a board of directors that is appointed manage municipal loans formerly granted under by the Lieutenant Governor in Council and account- the Ontario Municipal Economic Infrastructure able to the Minister of Economic Development, Financing Authority (OMEIFA). OSIFA was estab- Employment and Infrastructure. lished to expand the OMEIFA’s mandate from one Chapter 3 • VFM Section 3.06 IO’s role is to manage Ontario’s public infra- of lending strictly to Ontario municipalities to one structure, real estate and government facilities, and that included borrowers in the broader public and to help finance public infrastructure renewal. It has not-for-profit sectors as well. Between 2006 and four main lines of business that deal with both gov- 2011, OSIFA and several other crown agencies were ernment and non-government clients: Real Estate amalgamated, first forming the Ontario Infrastruc- Management, Ontario Lands, Project Delivery, and ture Projects Corporation and ultimately creating Lending (the Loans Program). the Ontario Infrastructure and Lands Corporation IO lends money to municipalities, the broader (referred to as IO throughout the report). public sector and the not-for-profit sector in Ontario for the development of infrastructure. The Loans Program’s 2013/14 budget was $9.85 million. Expansion of Loan Portfolio IO’s Lending department employs 28 full-time- When OSIFA was formed and took over the Loans equivalent staff, including loan officers, commercial Program in 2004, it was administering a portfolio underwriters, client-relations personnel, credit risk of approximately $514 million in municipal loans. analysts, project managers, treasury analysts and Since then, the types of borrowers eligible for the legal advisors (see Figure 1). program have grown from solely municipalities to 10 eligible sectors. The eligible sectors, which are 218 Infrastructure Ontario’s Loans Program 219 outlined in the Act and further detailed in Ontario • Aboriginal health access centres; Regulation 210/11 of the Act, are as follows: • community health and social service hubs; • municipalities; • not-for-profit arts training institutes; and • universities and affiliated colleges; • not-for-profit sports and recreation • municipal corporations (including power organizations. generation and local energy-distribution com- Entities that fall into one of the above sectors are panies and district energy corporations); eligible to borrow money from IO. In addition, cer- • local services boards; tain other entities (such as the 2015 Pan American • not-for-profit long-term-care homes and Games Organizing Committee and MaRS Discovery hospices; District) have been named eligible borrowers under • not-for-profit social and affordable housing the Act and its regulations. The Royal Conservatory providers; of Music was made an eligible borrower through an Figure 1: Infrastructure Ontario Organization Chart Source of data: Infrastructure Ontario Ministry of Economic Development, Employment and Infrastructure Board of Directors President and Chief Executive Officer Chapter 3 • VFM Section 3.06 Transaction General Counsel Major Projects Real Estate Structuring, Risk and and Corporate Human and Lending* Commercial Projects* Secretary* Resources Lending and Land Chief Risk Officer Legal Services Development Responsible for: Municipal Business Risk Management • drafting loan agreements Development and Internal Audit and Lending • loan-closing documents • general legal advice Responsible for: • loan analysis and Credit Risk underwriting • construction monitoring Responsible for: • loan approval • loan monitoring * Divisions typically involved in administering the Loans Program. 220 2014 Annual Report of the Office of the Auditor General of Ontario Order in Council (OIC), under a section of the Act Figure 2: Total Outstanding Loan Advances by Eligible that allows the government to specify other activities Sector, as at March 31, 2014 (%) in which IO may engage based on Cabinet approval. Source of data: Infrastructure Ontario The expansion of the Loans Program to the broader-public and not-for-profit sectors has given Municipalities (64.4%) borrowers who previously may not have had an Other* (0.3%) external credit rating access to affordable finan- Not-for-profit arts training cing through the province’s high credit rating and institutes (2.5%) low cost of capital. Under the Loans Program’s Long-term-care homes and hospices (3.3%) expanded mandate, IO has a portfolio of 806 loans Universities and advanced to 353 borrowers and has approved loans affiliated colleges totalling more than $7 billion since the inception of (3.6%) the Program. As of March 31, 2014, IO’s balance of MaRS Phase 2 Inc. outstanding loans receivable totalled approximately (4.4%) $4.9 billion. Figure 2 shows this balance broken Not-for-profit social and affordable down by sector. housing providers (12.8%) Municipal corporations Credit Risk Framework (8.7%) IO’s Credit Risk Policy outlines a credit risk man- * Includes the following sectors: Aboriginal health access centres; community health and social service hubs; not-for-profit sport and recreation agement strategy, roles and responsibilities, inter- organizations; local services boards. nal controls, and requirements for reporting to its board of directors. the least risky because they have ongoing, consist- This policy defines credit risk as “the potential ent revenue streams that allow them to service debt for default or non-payment by borrowers of sched- on a long-term basis. Borrowers rated “secondary” uled interest or principal repayments.” In addition include some municipal corporations (for example, Chapter 3 • VFM Section 3.06 to this general policy, IO has policies on credit risk local energy-distribution companies), long-term- and lending for each of the 10 eligible borrowing care homes, not-for-profit social housing provid- sectors. Each policy outlines the sector’s general ers and Aboriginal health access centres. These credit strengths and risks as well as common borrowers are in the secondary risk tier because, individual risks within it. The policies also outline although they have some government oversight and IO’s maximum exposure limits for individual loans financial support, the government has no legisla- and for each sector overall, debt service coverage tive requirement to support them. Borrowers rated ratio limits for potential borrowers within the “tertiary” include some municipal corporations sector according to their risk class, and other sector- (for example, power generators), district energy specific limitations. corporations, not-for-profit arts training institutes, IO classifies its borrowers into three risk tiers hospices, and not-for-profit sports and recreation that are based on the borrowing entity’s relative organizations. Tertiary borrowers are considered level of government oversight and funding. Borrow- the highest credit risk because they generally ers rated “primary” include municipalities, universi- receive little or no government capital funding and ties and affiliated colleges, and local services boards must rely on self-generated revenues to service (who provide municipal-level services outside of their debt. incorporated municipalities, in rural areas, for example). Loans to these borrowers are considered Infrastructure Ontario’s Loans Program 221 compliance with non-standard loan covenants Audit Objective and Scope within certain loan agreements. Generally, we found that IO’s policies and pro- cedures for lending and approval were reasonable The objective of our audit was to assess whether and sufficient for ensuring that loans to eligible bor- Infrastructure Ontario (IO): rowers are made at terms commensurate with the issues loans to eligible borrowers at terms that • associated risk. IO has strengthened its monitoring reflect the associated risks; and over the past couple of years through the separation effectively monitors the ongoing performance • of the monitoring function from the underwriting of outstanding loans and takes appropriate and credit review functions, and through the actions when risks warrant. development of various loan portfolio monitoring Senior management at IO reviewed and agreed reports and tools, including its Loan Watch List to our audit objective and associated audit criteria. for troubled loans. The vast majority of borrowers Our audit work was conducted primarily at IO’s are making their payments as required, and loan two main Toronto offices between January and losses have historically been rare and quite low. The June of 2014. We reviewed relevant documents and higher-risk loans in IO’s portfolio were loans that did administrative policies and procedures, analyzed not initially fall into IO’s eligible borrowing sectors. pertinent information and statistics, and inter- viewed appropriate staff from IO as well as other
Load more

Recommended publications
  • Mars Report Urban Innovation.Pdf
    Cutting Edge Drug Discoveries Changing the World Supply and Demand Blending science and business expertise JLABS using new no-strings-attached How firms like Lucky Iron Fish Innovative startups look to public is key to medtech breakthroughs model to turn science into products lead the way in social enterprise policy as critical to future growth PAGE 5 PAGE 9 PAGE 16 PAGE 29 Ambitious entrepreneurs and scientists at MaRS are working collaboratively to turn ideas Urban into successful businesses. Innovation MaRS Discovery District MaRS_Magazine_FINAL.indd 1 2016-10-05 4:40 PM DM172089_PgOFC_MaRS_NOV_2016.indd 1 16-10-06 10:08 AM INNOVATION But we also face challenges. Our long reliance on resource extraction and imported technology has resulted in an economy with low IS THE business research-and-development spending and poor performance in commercializing intellectual capital. On the positive side, Toronto, FUNDAMENTAL Montreal and Vancouver have all been drawing international notice as innovation regions. They also deserve domestic attention for two reasons. QUEST FOR First, Canada is one of the most urbanized nations of the world, with a massively disproportionate share of national income generated in and HUMAN around those three major cities. Second, international data shows that innovation is a process that runs best with an urban engine. PROGRESS In particular, urban regions have a huge scale advantage BY ILSE TREURNICHT, CEO, MaRS DISCOVERY DISTRICT in convergent innovation, exemplified by various fields, such as precision medicine, nnovation is a word “Our greatest advantage advanced materials, financial one hears often these technology, artificial intelligence days — perhaps too lies in our cities.
    [Show full text]
  • Commercializing Inventions at the University of Toronto
    Working Paper October, 2020 Chelsea Tao and Mariana Valverde Commercializing Inventions at the University of Toronto What is a university? In Canada, as elsewhere, it is a centre for research and teaching, supported in part by public funds. It is also an employer, a producer of images, a subject of rankings, a real estate owner, a generator of revenues, and a hub in global networks of value and aspiration. But how does a university work? What exactly does it do? What are the powers and pressures, the practices and networks that constitute contemporary university worlds? An interdisciplinary team of faculty at the University of Toronto, we seek to discover the many worlds of our own institution, in collaboration with graduate and undergraduate students. We foreground the everyday experience of people who work or study in different corners of the institution, who live in its shadow, or respond to its public face. A pilot phase 2019-2021 has been funded by the Social Science and Humanities Research Council of Canada (SSHRC) Insight Discovery Grant #430-2019-00054 For more information about the project please contact [email protected] Visit our website at http://universityworlds.ca/ To cite this paper: Tao, Chelsea and Mariana Valverde. (2020) “Commercializing Inventions at the University of Toronto”. Working Paper 4, Discovering University Worlds, University of Toronto. 2 Abstract Universities all over the world have been pressured for several decades, and in turn have pressured their researchers, to help commercialize university inventions, mainly through setting up new corporations and/or selling intellectual property rights to existing corporations.
    [Show full text]
  • The Rise of the Hub
    A MaRS WHITE PAPER THE RISE OF THE HUB How innovation is moving downtown MaRS Joe Greenwood | MaRS Data Catalyst Joeri van den Steenhoven | MaRS Solutions Lab Authors Joe Greenwood Joeri van den Steenhoven Lead Executive, Data Vice President, Systems Innnovation MaRS Data Catalyst MaRS Solutions Lab [email protected] [email protected] About MaRS MaRS Discovery District is a not-for-profit innovation hub dedicated to driving economic and social prosperity by harnessing the full potential of innovation. MaRS works with entrepreneurs and investors to launch and grow companies that have broad economic and societal impact, and convenes governments and industry stakeholders to enable widespread adoption in complex markets and systems. For more information, please visit marsdd.com. MaRS Discovery District 101 College Street, Suite 401 Toronto, Ontario M5G 1L7 Tel: 416-673-8100 Marsdd.com Published March 2017 COVER IMAGES FRONT: ISTOCKPHOTO BACK: MaRS/HOLLY SISSON © Copyright MaRS Discovery District 2017. All rights reserved. THE RISE OF THE HUB Innovation can improve our lives, improve our society, and produce jobs for millions. But it is less and less a product of random factors. These days, where innovation can best be nurtured matters hugely. We can not only influence that outcome, but we are further along in doing so than many of us, even in Toronto, realize. THE RISE OF THE HUB CONTENTS 01/ Innovation’s new perspective 11 02/ Cities as economic drivers 13 03/ The new geography of innovation 16 04/ The rise of the hub 11 05/ Conclusion 15 THE RISE OF THE HUB INNOVATION’S 01/ NEW PERSPECTIVE The nature of innovation – how it happens, how we can foster it – is changing everywhere.
    [Show full text]
  • The Blockchain Corridor
    THE BLOCKCHAIN CORRIDOR: Building an Innovation Economy in the 2nd Era of the Internet Don Tapscott and Alex Tapscott | The Tapscott Group Tuesday, Feb 7, 2017 CONTENTS 1. EXECUTIVE SUMMARY 3 2. BACKGROUND: THE BLOCKCHAIN REVOLUTION HAS BEGUN 6 Some Blockchain Challenges 9 3. CANADA AS A GLOBAL HUB FOR THE INTERNET’S SECOND ERA 11 A Strong Financial Sector 12 Talent and Diversity 12 Improved Investment Climate 14 Fintech Innovation 14 Blockchain Entrepreneurship 15 Government Priorities 16 4. CANADA’S SHORTCOMINGS 18 A Clear National Strategy 20 Funding Bottlenecks 21 Risk Aversion 23 Inadequate R&D Spending 24 Policy and Regulatory Impediments 25 The Brain Drain 26 The Start-Up Drain 27 5. THE WAY FORWARD 28 A Canadian Digital Economy Commission 29 Solving the Dilemma of Flow-Through Shares for Blockchain R&D 29 The Blockchain Research Institute 31 Engage Governments as Model Users 32 Protect and Expand Access to the U.S. 33 Education and Cultural Change 34 Project Leadership 36 Project Funding 36 APPENDICES 37 Appendix A: December 19 2016 Roundtable Participants 37 Appendix B: Roundtable Responses - Canadian Blockchain Economy Obstacles* 40 Appendix C: Roundtable Responses – Action Items: What is to be done?* 42 Appendix D: Blockchain Opportunities Beyond Financial Services 44 SOURCES 49 » 01 EXECUTIVE SUMMARY EXECUTIVE SUMMARY 3 The internet is entering a second The first generation of the internet centered on Silicon Valley, which today is home to many of the world’s generation and it is feasible that largest Internet companies, and has become an engine the vast ecosystem for this new of innovation, financing, incubation and acceleration of entrepreneurial activity and business transformation.
    [Show full text]
  • Innovation and the Human Brain CREATING VALUE for ONTARIO and LEADING the WORLD
    Innovation and the Human Brain CREATING VALUE FOR ONTARIO AND LEADING THE WORLD SUMMARY REPORT JULY 2011 ppforum.ca Public Policy Forum Building Better Government The Public Policy Forum is an independent, not-for-profit organization dedicated to improving the quality of government in Canada through enhanced dialogue among the public, private and voluntary sectors. The Forum’s members, drawn from business, federal, provincial and territorial governments, the voluntary sector and organized labour, share a belief that an efficient and effective public service is important in ensuring Canada’s competitiveness abroad and quality of life at home. Established in 1987, the Forum has earned a reputation as a trusted, non- partisan facilitator, capable of bringing together a wide range of stake- holders in productive dialogue. Its research program provides a neutral base to inform collective decision making. By promoting information- sharing and greater links between governments and other sectors, the Forum helps ensure public policy in our country is dynamic, coordinated and responsive to future challenges and opportunities. © 2011, Public Policy Forum 1405-130 Albert St. Ottawa, ON K1P 5G4 Tel: 613.238.7160 Fax: 613-238-7990 www.ppforum.ca ISBN: 978-1-927009-22-2 INNOVATION AND THE HUMAN BRAIN : CREATING VALUE FOR ONTARIO AND LEADING THE WORLD TABLE OF CONTENTS About This Report ...................................................................................... i Introduction ............................................................................................
    [Show full text]
  • The Rise of the Hub
    A MaRS WHITE PAPER THE RISE OF THE HUB How innovation is moving downtown MaRS Joe Greenwood | MaRS Data Catalyst Joeri van den Steenhoven | MaRS Solutions Lab Authors Joe Greenwood Joeri van den Steenhoven Lead Executive, Data Vice President, Systems Innovation MaRS Data Catalyst MaRS Solutions Lab [email protected] [email protected] About MaRS MaRS Discovery District is a not-for-profit innovation hub dedicated to driving economic and social prosperity by harnessing the full potential of innovation. MaRS works with entrepreneurs and investors to launch and grow companies that have broad economic and societal impact, and convenes governments and industry stakeholders to enable widespread adoption in complex markets and systems. For more information, please visit marsdd.com. MaRS Discovery District 101 College Street, Suite 401 Toronto, Ontario M5G 1L7 Tel: 416-673-8100 Marsdd.com Published March 2017 COVER IMAGES FRONT: ISTOCKPHOTO BACK: MaRS/HOLLY SISSON © Copyright MaRS Discovery District 2017. All rights reserved. THE RISE OF THE HUB Innovation can improve our lives, improve our society, and produce jobs for millions. But it is less and less a product of random factors. These days, where innovation can best be nurtured matters hugely. We can not only influence that outcome, but we are further along in doing so than many of us, even in Toronto, realize. THE RISE OF THE HUB CONTENTS 01/ Innovation’s new perspective 11 02/ Cities as economic drivers 13 03/ The new geography of innovation 16 04/ The rise of the hub 11 05/ Conclusion 15 THE RISE OF THE HUB INNOVATION’S 01/ NEW PERSPECTIVE The nature of innovation – how it happens, how we can foster it – is changing everywhere.
    [Show full text]
  • Conference Proceedings Final Report
    *+,-./.,#.01/+#..23,4$0 53,)607.%+/8 !!!"#$%#&'('"#) Message from the CSPC Chair: Mehrdad Hariri Dear Colleagues, the endorsement and guidance of the members of large. The Centre will strive to be all those things advisory and honorary committees, all of whom are and more. listed at the end of this book. I sincerely thank them all. Building the Canadian Science Policy Centre is well It is with great pleasure that justified: the Science, Technology and Innovation I present you with the The CSPC has provided a unique opportunity for Council, in its 2008 state of the nation report, points conference proceedings inclusive national dialogue on the main issues of to the insufficient channels for interaction among report for the second annual science policy across Canada, helping to forge various stakeholders. Canada must upgrade the Canadian Science Policy stronger ties between diverse science policy mechanisms for coordination and collaboration Conference (CSPC), held stakeholders. In order for CSPC to sustain the across areas of research, between science and policy, October 20-22, 2010 in relationship with the community, and act as a hub for and among academia, government, business and the Montréal, Québec. science policy discourse in Canada, we have philanthropic sectors. The report indicates that proposed the establishment of the first Canadian sustaining high levels of interaction among Spurred on by a belief that Canada deserves an Science Policy Centre. The idea is that the Centre stakeholders is a challenge for Canada’s S&T annual forum dedicated to science policy issues, the could work across sectors to enhance networking, community, and that building innovation networks 2010 Conference’s motto was “Building Bridges for collaboration and cooperation among big business, beyond our borders is an important key to success.
    [Show full text]
  • Ontario Government, University of Toronto, and Mars Secure Johnson & Johnson Innovation, JLABS for Toronto – First JLABS Incubator Outside of United States
    Ontario Government, University of Toronto, and MaRS secure Johnson & Johnson Innovation, JLABS for Toronto – first JLABS Incubator outside of United States JLABS @ Toronto will be a 40,000 square foot facility holding up to 50 start-ups focused on biotechnology/pharmaceutical, medical device, consumer and digital health Participating hospitals pledge support for start-up funding TORONTO, SEPTEMBER 8, 2015 — The Ontario Government, University of Toronto, and MaRS Discovery District (MaRS) today announced a collaboration with Janssen Inc. to launch the successful Johnson & Johnson Innovation, JLABS incubator model in Toronto. The new facility, called JLABS @ Toronto, will open in spring of 2016 at MaRS Discovery District and will support start-ups with lab space, programs, and potential investment partners as they work to build important, successful early-stage companies. “The arrival of the Johnson & Johnson Innovation, JLABS model to MaRS’ West Tower reinforces Ontario’s position as one of the world’s leading life sciences clusters,” said Brad Duguid, Minister of Economic Development, Employment and Infrastructure. “JLABS @ Toronto will support researchers and entrepreneurs across the province and accelerate the development of Ontario companies while connecting Toronto to potential Johnson & Johnson collaborators and investors.” “Research and innovation are fundamental to the mission of the University of Toronto,” said Dr. Meric S. Gertler, President, University of Toronto. “We host a vibrant entrepreneurial ecosystem featuring nine campus-led accelerators under the umbrella of our Banting & Best Centre for Innovation and Entrepreneurship. The addition of JLABS to this ecosystem will further propel the creation of new companies and new jobs, and ultimately new healthcare solutions that will benefit individuals and our society for years to come.” “Toronto is home to a vibrant and prolific healthcare and life sciences community led by academic hospitals, world-class research institutions, top scientists, and a strong start-up ecosystem.
    [Show full text]
  • Employment and Salary Report 2020-2021
    1 employment & salary report Rotman Career Services Employment and Salary Report 2020-2021 2 employment & salary report Contents Director’s Message 3 Full-Time MBA Employment 4–5 Full-Time MBA Internships 6–7 Master of Financial Risk Management 8 (MFRM) Employment Master of Financial Risk Management 9 (MFRM) Projects Master of Management Analytics 10 (MMA) Employment Master of Management Analytics 11 (MMA) Practicums Corporate Partnership Opportunities 12 Companies Hiring at Rotman 13–15 Connect with Rotman Career Services 16–17 3 employment & salary report Director’s Message It gives me great pleasure to introduce the Rotman School’s Employment and Salary Report for 2020-2021. Whether you’re a young professional considering a Rotman degree program or a corporate recruiter looking to connect with our talented students and graduates, we hope you will find this report informative and useful. What a year it’s been! While none of us could imagine we would work remotely so long, we have pulled together and come out stronger than ever. At the Career Centre, we are proud of efforts to find our students and graduates meaningful work. Our team immediately transitioned to online service delivery, and our career support intensified. Some Lyla Korhani highlights: Director, Career Services Rotman School of Management • We launched a Hire a Student LinkedIn Campaign highlighting our 2020 graduates across all programs. • We delivered many industry events such as alumni coffee chats, lunch and learns and industry roundtables. • We expanded our job leads beyond traditional career paths and shifted focus on emerging industries including technology and healthcare. And the results speak for themselves.
    [Show full text]
  • In Appreciation of Grand Challenges Canada's Peer Reviewers
    In Appreciation of Grand Challenges Canada’s Peer Reviewers On behalf of Grand Challenges Canada, we would like to take this opportunity to thank our peer reviewers. The success and quality of the peer review process for Grand Challenges Canada's programs is critical in identifying Bold Ideas with Big Impact™. This is made possible by dedicated people who generously give their time and expertise to review applications. We recognize that these applications take a considerable amount of time to review. We very much appreciate the substantial effort each reviewer contributed to the review process and for graciously accepting our invitation to participate. We would also like to thank the Canadian Institutes of Health Research (CIHR), whose staff members have done an excellent job administering the independent peer reviews according to international standards of excellence. Grand Challenges Canada values the continued support of our peer reviewers as we move into the future. Peter A. Singer, OC, MD, MPH, FRSC Andrew Taylor, M.Sc. Chief Executive Officer Executive Vice President About Grand Challenges Canada Grand Challenges Canada is dedicated to supporting bold ideas with big impact in global health. We are funded by the Government of Canada through the Development Innovation Fund announced in the 2008 Federal Budget. We fund innovators in low- and middle-income countries and Canada. Grand Challenges Canada works with the International Development Research Centre (IDRC), the Canadian Institutes of Health Research (CIHR) and other global health foundations and organizations to find sustainable long-term solutions through integrated innovation - bold ideas which integrate science, technology, social and business innovation.
    [Show full text]