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Infrastructure bank model can encourage investment in infrastructure projects

Published: 7 August 2025

Private market developers face an “investment catch-22” in getting infrastructure projects off the ground, Professor Sebastien Betermier wrote in a recent report for the C.D. Howe Institute. Private investors view new infrastructure markets as complex, unfamiliar, and high risk. But the infrastructure bank model can create value as a cost-efficient policy tool in the government ecosystem, Betermier concluded. According the Chief Investment Officer of the Building Ontario Fund (BOF) Anca Drexler, Betermier’s research shows that well-structured public investment vehicles such as the BOF can reduce risk in projects and attract and unlock institutional capital, and in doing so, accelerate delivery,” says Anca Drexler, the Chief Investment Officer of BOF.

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