No sharing of Gordie Howe bridge toll until “all of the debt is repaid” by US, Carney says

Prime Minister, we're looking for more information on the deal to open the Gordie Howe Bridge.Canada spent $6 .4 billion to build it.Is the Canadian debt repayment on the bridge included as expenses before profits are split with the U .

S.?Well, let me say first of all that we're very pleased that the prospect of the bridge reopening later this month, or opening later this month, this is good for Canada, good for the United States, both in the short term and the long term.we have with the agreement with the U .S.is as follows.

Let me start with what it is.It's not splitting the tolls of the bridge.It is an agreement for 15 years to split net revenues.Splitting of tolls, any sharing of the toll revenue won't happen until all of the debt is repaid.We will split net revenues over the course of the first 15 years.And those net revenues are after operational costs, so it's manning the tollbooths, it's maintenance, it's snow removal, a series of other operational costs.

We expect that after those costs, for the first few years, net revenues will be modest.In fact, we expect them to be negative, you know, as traffic ramps up.So negative to modest in the first few years.And what's been designed is an alignment of incentives, so that when the splitting begins, all of the portions that go to the U .S.government will be reinvested in economic development, regional economic development, in the area, the U .

S.side of the area, obviously, which is pro -cyclical.It reinforces more traffic, more traffic, higher revenues, more investment, and that's the way it moves forward.The underlying agreement that we have with Michigan.remains the same.And so no sharing of tolls until all the debt is repaid.

So it's a good deal for both sides.It gets things moving.And that's in the spirit of today's announcement, which is to get things moving.

Are you able to provide more information about the deal?Some sources are from to us and to Bloomberg and Reuters are saying it's a 50 % split, I guess, once the sharing starts happening.And if this is a Canadian project, why did you have to start giving?Why did you decide to start giving some of the revenue away?

The first thing is you quoted the overall amount of the capital investment of the project around $6 .5 billion.What we're talking about is very modest relative to the size of that.That's the first thing, just to make sense.The second is that, as I'm going to repeat myself, but I think it's an important point, that it's aligned, the incentives are aligned here because the reinvestment in regional economic development on the Michigan side, mainly the Michigan side.That's obviously good for Michigan, but it's also good for Canada because it's going to reinforce the traffic.So we see the incentive alignment.

It's a reasonable discussion.It's a good deal for Canada, good for the U .S., and it's great for both countries to have this bridge open, and we're looking forward to it.