The Canadian government now confirms that it will begin sharing net toll revenue with a US-controlled economic development fund as soon as the Gordie Howe Bridge opens. It agreed to the arrangement after the Trump administration conditioned approval of the international bridge’s opening on several changes to long-standing agreements governing the project, The Canadian Press reports.
In initial public comments about the recently concluded deal, Prime Minister Mark Carney created a mistaken impression that no transfers of net revenue would occur until Canada fully recouped its investment in the bridge’s debt financing and construction. Canada assumed sole financial responsibility for executing the project after the US declined a partnership opportunity.
Opposition party leaders are criticizing Carney for sowing confusion about the deal terms and for conceding a significant right Canada previously enjoyed. The initial project agreements — to which only Canada and the State of Michigan were parties — specified that Canada would retain 100 percent of net toll revenue until construction and financing costs were fully repaid. Only after that contingency was satisfied would Michigan become entitled to a share of toll revenue. Until the second Trump administration took office, that provision was not challenged, and the United States made no claim to a share of toll revenue.
Yesterday, Carney’s office issued a statement defending the arrangement as “a good deal for businesses and workers in the region.”