Canada Infrastructure Bank, Ottawa reach financial close on C$380 million loan for zero-emission buses

OC Transpo secured significant funding that will help it purchase zero-emission buses. The city of Ottawa and the Canada Infrastructure Bank (CIB) have reached financial close on a loan of up to C$380 million (US$294.71 million) that will help with the upfront capital costs of procuring an additional 446 zero-emission buses (ZEBs) through 2027.

In June 2021, the Ottawa City Council approved a plan for OC Transpo to procure solely zero-emission buses moving forward as it targets transitioning to a fully electric fleet by 2036. The first four battery-electric buses to join OC Transpo’s fleet entered service in early 2022 and the agency is seeking to add 26 more in 2023 and another 420 by the end of 2027.

“I am delighted our investment to support the city of Ottawa’s transition to a fleet of 446 zero-emission buses has achieved financial close. Our partnership will help the city meet its climate targets and provide cleaner public transportation for future generations. This is a tremendous opportunity to modernize municipal infrastructure and support a greener community,” said Canada Infrastructure Bank CEO Ehren Cory.

Consistent with the CIB's ZEB initiative, repayment of the investment is expected to be covered through the anticipated reduced operating costs over the life of the ZEBs as compared to diesel buses.

“Transportation accounted for 42 percent of GHG emissions in Ottawa in 2020, which is why our commitment to converting all buses to electric over the next 15 years is a key pillar to Energy Evolution: Ottawa's Community Energy Transition Strategy. Municipalities are on the front lines of climate change impacts and this CIB investment allows Ottawa to take a leadership role in implementing community GHG reductions,” said Ottawa Mayor Jim Watson.