Canadian Prime Minister Mark Carney has announced that Canada will not share toll revenue generated by the Gordie Howe International Bridge with the U.S. state of Michigan until the project’s $6.4 billion construction debt has been fully repaid.
Speaking on the issue, Carney said the Canadian government remains committed to recovering the full cost of the bridge before any toll-sharing arrangement is considered. He emphasized that protecting Canadian taxpayers’ investment is a top priority.
The Gordie Howe International Bridge, which connects Windsor, Ontario, with Detroit, Michigan, is one of North America’s largest cross-border infrastructure projects. Although it is expected to strengthen trade and transportation between the two countries, the financial arrangements surrounding the project continue to be closely monitored.
Carney’s remarks indicate that Canada intends to retain all toll revenues until the outstanding project debt is cleared, delaying any revenue-sharing agreement with Michigan.
The Canadian government doesn’t expect that the bridge will make a profit for some time, Carney told reporters.
The net revenues split with the U.S. will only be accrued after operational costs are accounted for.
“Those net revenues are after operational costs: it’s manning the toll booths, it’s maintenance, it’s snow removal,” Carney said. “We expect that after those costs, for the first few years, net revenues will be modest.
“In fact, we expect them to be negative as traffic ramps up.”
“It’s a good deal for both sides. It gets things moving.”
When pressed for detail as to whether the split of net revenues would be 50-50 between Canada and the U.S., Carney said: “The incentives are aligned here because the reinvestment in regional economic development on the Michigan side … that’s good for Michigan, but it’s also good for Canada.
“It’s a good deal for Canada and it’s a good deal for the U.S.”
