Is it the role of the Caisse de dépôt et placement du Québec to provide and manage a public transport service, as is the case with the REM? NO, period.
For this reason, I propose to the management of the Caisse to transfer its REM to the ARTM (Regional Metropolitan Transport Authority), as provided for in the contract concluded in 2018 with the Government of Quebec. Yes! The Caisse can sell its REM to the government in a few years.
With the day-to-day management of the REM and all the technical glitches that result in its share of glitches having to be resolved, we are far from the true mission of the fund, whose net assets under management amount to $424 billion.
What is this mandate of the fund? Allow me to recall Article 4.1 of the Law on the Caisse de dépôt etplacement du Québec. “The mission of the Caisse is to receive amounts of deposits in accordance with the law and to manage them, seeking the optimal return on depositors’ capital in accordance with its investment policy, while contributing to the economic development of Quebec.”
So the fundamental mission of the fund is to grow the astronomical sum of $424 billion from Quebecers’ nest egg, accumulated by the 48 public depositors. The most important of these are the Régime des rentes, the RREGOP (Regime des rentes pension plan for the state). employees), the Ministry of Finance for the pension fund, the generation fund, the number of municipal pension plans, etc.
THE REM RESALE CLAUSE
According to the contract concluded with the Government of Quebec, the Caisse (through Projetco) is obliged to operate all “antennas” of the REM for a period of at least five (5) years from the date of full commercial operation of the REM. However, the Caisse then has the option of separating from REM. Yes, yes, to resell it.
Here is the clause in question from the contract: “If Projetco (the Caisse) wishes to stop operating an antenna after the expiry of the five (5) year period mentioned above, it must agree with the Authority (ARTM) the conditions for maintenance or cessation of operation of the antenna in question, failing which the Minister [des Transports] will have the option to acquire either the assets of the project or the shares in the capital stock of REM Inc. at fair market value.
I strongly believe that the Caisse should use this clause to resell all of its REM to the Government of Quebec, that is, all of its antennas covering the Central Station, Brossard, West Island, the Airport, Deux-Montagnes and Anse-à- connect l’Orme.
A bundle of worries
Since the beginning of the adventure, the REM has caused an incredible number of distractions for the Caisse’s management, namely cost overruns, unpleasant construction surprises, delays in the opening of the stations and the purchase of controversial Indian trains at the expense of the Bombardier-made trains at La Pocatière, technical problems, noise , inadequate communication, etc.
And now winter is fast approaching. As the REM’s first winter begins, it is the unknown that awaits users. The tension among the many users who have already become victims of failures since the first REM antenna from Brossard to the main train station in the city center was put into operation can only increase.
On the part of the REM leadership and the management of the Caisse, we have to be vigilant while keeping our fingers crossed that everything goes as smoothly as possible.
WASTE OF ENERGY
What a waste of energy from the fund for a financially marginal project in the fund’s net assets. Although the REM project cost $8 billion, it ultimately represents only 1.9% of the Caisse’s net assets.
With all the problems and worries facing the Caisse’s managers, the REM must undoubtedly take a lot of time.
The fact that the Caisse, as an investor, invests billions of dollars in infrastructure projects is not a problem. But not as a promoter who manages an infrastructure project every day, as is the case with the REM. The Fund should leave this to the organizations specialized in this matter.
The fund specializes in investments. His main task is to grow the money entrusted to him. And she already has her hands full with her thousands of investments, some of which are experiencing a “slump.”
This also applies to the multinational Alstom, whose main shareholder the fund became after the sale of Bombardier Transport to Alstom. With this investment alone, the Caisse is currently in a hole of more than $2 billion.
Important fact to keep in mind during this time when REM failures are on the rise.
Who was awarded the contract to supply vehicles, systems and operation and maintenance services for the REM? Alstom Transport Canada (Alstom subsidiary) and SNC-Lavalin (renamed AtkinsRéalis).
What an irony of fate when we know that the Caisse is the main shareholder of these two large companies responsible for managing their REM!