Ontario has allocated $3.2 billion from the 2015 sale of Hydro One shares to the Trillium Trust, a fund for infrastructure projects that will help create jobs and strengthen the economy.
The government first stated its intention to dedicate all net revenue gains from the sale of Hydro One shares to the Trillium Trust in its 2015 Budget and Fall Economic Statement. The money will be used to build key vital, long-term infrastructure projects and transportation across Ontario.
Following the sale of the province’s shares in General Motors, Ontario previously credited $1.35 billion in net proceeds to the Trillium Trust, bringing its total balance to over $4.5 billion. Additional net revenue gains from unlocking value from Hydro One has allowed the government to provide Moving Ontario Forward with a $2.6 billion increase in dedicated funding in the 2015 Budget, bringing the total to $31.5 billion over a 10-year period.
Ontario is on the way to generating about $9 billion in gross proceeds and other revenue benefits from broadening the ownership of Hydro One while still remaining its largest single shareholder. Taxpayers will continue to benefit from dividends in the company, allowing the government to increase investments in infrastructure programs without further raising taxes, increasing debt or reducing public services. Some of these programs include GO Transit Regional Express Rail and the Ontario Community Infrastructure Fund.
Regulations under the Trillium Trust Act, 2014, ensure that net revenue gains associated with the sale of designated assets will go to the Trust to support some of Ontario’s key infrastructure projects.
“By broadening the ownership of Hydro One and remaining the largest shareholder, we are investing in new roads, bridges, transit, schools and hospitals in communities in every corner of Ontario,” said Glenn Thibeault, Minister of Energy, in a press release. “The unprecedented scale of Ontario’s infrastructure investment will grow our economy and create good jobs today and tomorrow.”