Corporate and Electricity Finance

Responsibilities

The Corporate and Electricity Finance division provides the government with analysis and advice on financing and other initiatives that may impact the Province’s and OEFC’s finances and their direct and indirect liabilities.

Results in 2003-04

The corporate finance branch provided financial advice, due diligence and modelling to the government and assisted in negotiations with lenders on a wide-range of corporate finance issues for school boards, hospitals and other similar projects.

Advice was provided so that the Ontario Clean Water Agency (OCWA) could obtain an $8 million credit facility to finance the implementation of the Safe Drinking Water Act. In addition to evaluating the underlying business case for the financing, the group advised OCWA on establishing a competitive procurement process, drafting a Request for Proposals (RFP) and evaluating respondents’ requests. A $10 million loan for the Ontario Energy Board at competitive terms within tight deadlines was also negotiated.

Assistance was provided to the Royal Ontario Museum (ROM) in acquiring up to $63.5 million in financing for the Renaissance ROM project by providing advice and assisting in negotiations with lenders. It is estimated that the joint efforts of the ROM and the OFA saved approximately $3.9 million in financing costs on a present-value basis.

Corporate finance also established OMEIFA (now OSIFA), and in conjunction with Retail Markets, tax-exempt Ontario Opportunity Bonds. The division also assisted with the development of financing strategies for the local share of Peterborough’s new hospital.

The electricity finance branch was also involved in a number of government initiatives in 2003-04, providing financial analysis, modelling and related advice on electricity sector financial issues, including OEFC cash flows, projections of the Electricity Consumer Price Protection Fund (ECPPF), stranded debt and the monitoring and financial analysis of OPG and Hydro One business plans and performance.

The branch was involved in finalizing the Ontario Nuclear Funds Agreement (ONFA). This required developing governance and reporting relationships with OPG and timely and accurate financial reporting to ensure that costs were minimized and financial performance targets were being met.