The Canada Infrastructure Bank (CIB) and the Regional Municipality of Durham (Durham Region or the Region) have signed a Memorandum of Understanding, that could see the CIB invest up to $68 million to support Durham Region Transit’s (DRT) purchase of up to 100 battery electric buses by 2027.
“I am pleased the CIB is making this important investment to support Durham Region’s expansion of zero-emission buses,” said Ehren Cory, President and CEO, Canada Infrastructure Bank. “Our partnership will help the Region provide cleaner public transportation for future generations. The CIB will continue making investments, which improve the quality of life for Canadians and support more sustainable communities.”
The CIB’s investment will contribute towards a portion of the capital acquisition costs of the battery electric buses. When compared to diesel buses, electric vehicles are anticipated to have reduced operating costs over time. Consistent with the CIB’s zero-emission bus (ZEB) initiative, repayment of the investment is expected to be covered through the anticipated reduced operating costs over time of the ZEBs as compared to diesel buses.
“Thank you to our partners at the CIB for their investment in our battery electric buses, a key priority that supports the Region of Durham’s Corporate Climate Change Action Plan and Community Energy Plan,” said John Henry, regional chair and CEO, Durham Region.
A high priority in DRT’s E-Mission Zero strategy, battery electric buses can improve the quality of life for Durham Region residents who will benefit from cleaner commuting options. The electrification of transit vehicles is a key milestone needed to meet the Region’s climate change commitments over the next 25 years.
“Battery electric buses are just one of many innovative projects that support DRT’s E-Mission Zero goals. We are pleased to be taking this very important step towards improving customer experience while making transit more sustainable, safer and cost effective,” said Shaun Collier, Mayor of Ajax and chair of the Transit Executive Committee.
The implementation of up to 100 battery electric buses is estimated to save approximately 8,000 tonnes of carbon emissions per year.
The CIB’s financing will work in conjunction with Infrastructure Canada’s funding for zero-emission transit. The CIB and the Region are expected to reach financial close by early 2023.
To date, the CIB has invested over $1.5 billion toward more than 5,000 ZEBs across Canada.
Featured image: (Durham Regional Transit)