Sale of Hydro One Shares Will Be ReInvested in Ontario Infrastructure, Job Creation and Economic Growth
Ontario has dedicated $3.2 billion from the sale of Hydro One shares in 2015 to the Trillium Trust, a fund for Ontario infrastructure projects that will help create jobs and strengthen the economy.
This follows on the government’s 2015 Budget and Fall Economic Statement commitment to dedicate all net revenue gains from the sale of Hydro One shares to the Trillium Trust, to build key vital, long-term infrastructure projects and transportation across Ontario.
Ontario previously credited $1.35 billion in net proceeds from the sale of the Province’s shares in General Motors, bringing the total balance of the Trillium Trust to over $4.5 billion. Additional net revenue gains from unlocking value from Hydro One has allowed the government to increase dedicated funding to Moving Ontario Forward by $2.6 billion in the 2015 Budget, bringing the total to $31.5 billion over a 10-year period, and supported an increase in total infrastructure spending to an unprecedented $160 billion over a 12-year period.
Ontario is on track to generate approximately $9 billion in gross proceeds and other revenue benefits from broadening the ownership of Hydro One, while remaining the largest single shareholder. Taxpayers continue to benefit from dividends in the company, allowing the government to increase investments in infrastructure programs such as GO Transit Regional Express Rail and the Ontario Community Infrastructure Fund without further raising taxes, increasing debt or cutting public services.
By investing more than $160 billion over 12 years, Ontario is making the largest investment in public infrastructure in the province’s history. These investments will support 110,000 jobs, on average, every year across the province, with projects such as hospitals, schools, roads, bridges and transit. Since 2015, Ontario has announced support for more than 475 projects that will keep people and goods moving, connect communities and improve quality of life.
“The net revenue gains credited to the Trillium Trust demonstrate Ontario’s commitment to investing in new infrastructure projects that help stimulate economic growth and create good, well-paying jobs. It will help people get to work more safely and get Ontario goods to market more quickly and competitively. Our government’s plan to optimize our assets is working and will help ensure that Ontarians benefit from key investments for generations to come.” — Charles Sousa, Minister of Finance
Maximizing the value of provincial assets is part of the government’s economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest infrastructure investment in hospitals, schools, roads, bridges and transit in Ontario’s history and is investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
- Regulations under the Trillium Trust Act, 2014 ensure that net revenue gains associated with the sale of designated assets are credited to the Trust to support Ontario’s key infrastructure projects such as roads, bridges and public transit. This ensures transparency on the net revenue gains that are being credited to the Trust.
- In April 2016, Ontario raised an additional $1.97 billion in gross proceeds from a secondary offering of more than 83 million common shares in Hydro One. The government will dedicate the net proceeds of this transaction to critical investments in transit and infrastructure throughout Ontario through the Trillium Trust.
- Ontario remains the largest single shareholder of Hydro One, allowing taxpayers to continue benefiting from dividends from ownership in the company.