Side deal to share Gordie Howe toll profits with U.S. doesn’t include provision for debt repayment
A new side agreement between Canada and the US regarding the Gordie Howe International Bridge stipulates that half of the net toll revenues will be directed to a US-run economic development fund. However, the deal does not account for debt repayment, contradicting earlier statements by Prime Minister Mark Carney.
Why it matters
The lack of debt-servicing provisions in the revenue-sharing agreement raises questions about the long-term financial viability and transparency of the infrastructure project.
Canada solely financed the $6.4-billion Gordie Howe International Bridge, which connects Windsor and Detroit. Paul Sancya/The Canadian Press
A 15-year side deal struck by Canada and the United States on the new Gordie Howe International Bridge will see Ottawa cut Washington cheques that amount to half the toll revenues minus operating costs for the span connecting Windsor and Detroit.
But Canada, which solely financed the $6.4-billion bridge, will not be subtracting any provision to repay debt from the annual payments to the United States, sources say.
That contradicts what Prime Minister Mark Carney said Sunday about debt when he played down the amount of money that would be sent to the U.S. for 15 years under this side agreement.
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