Tag: CDPQ Infra

50000 jobs

ALTO HSR Citizen Research Initiative · Plain Language Brief

Where do 50,000 jobs come from?

Alto says building the railway will support about 50,000 jobs. We checked that figure against two railways that publish both what they spend and who they employ.

September 2026

50,000

Jobs Alto says the project will support during construction. Its report defines the figure once, in an appendix.

~18,000

People actually working on the railway, on our estimate, at Alto’s own budget and schedule.

The number is not wrong. It is a standard output of a standard economic model, and when we rebuilt it from scratch we got almost exactly the same answer. But roughly two thirds of it is not people building a railway, and Alto’s report says so in only one place.

What Alto says

Alto’s report Canada’s Moment: The Economic Opportunity of High-Speed Rail, published in August 2026, says the Québec City–Toronto line will support approximately 50,000 jobs while it is being built, and more than 5,000 once it is running. The figure has been repeated in federal announcements and in news coverage since. Almost everywhere it appears, it appears on its own: 50,000 jobs during construction.

An earlier version of the number was slightly different. The federal announcement of 19 February 2025 gave over 51,000 jobs and a GDP gain of up to $35 billion a year. Transport Canada was still publishing that pairing in its 12 December 2025 release. Canada’s Moment, eight months later, gives 50,000 jobs and $24.5 billion. The report does not explain the difference between the two GDP figures, which is about 43 per cent.

What the report actually says

Further into the report, in section 4.3.3 and in two identical tables — Table 7 in the body and Table A4 in the appendix — the figure is described much more fully. There it is:

50,000 full-time equivalent jobs. A full-time equivalent is work converted to a standard full-time measure. It is not a count of people.
Spread across a ten-year construction period.
Three kinds of work counted together. Direct work on the project; supply chain work at the firms that supply it; and induced work, meaning jobs supported when those workers spend their wages in shops, restaurants and everywhere else.
Produced by the 2019 Statistics Canada input-output model. This is a standard tool that estimates how spending in one part of the economy ripples through the rest of it.
Labelled an upper estimate.

The appendix is careful about what this does and does not mean. It says the results describe economic activity supported by spending rather than a net gain to the country. It leaves them out of the project’s benefit-cost ratio. And it notes that the method does not allow for labour shortages or other limits on how much the economy can absorb.

That is a fair and reasonably candid description. The difficulty is where it sits. Those two pages of an eighty-four page report carry it, and nothing else does. The summary at the front, the table comparing high-speed rail with the alternative, Alto’s website, the government announcements and the news coverage all carry the number without any of it.

The number reaching the public is not the number the appendix defines. It is the same figure with its definition left behind.

How we checked it

Two railways publish both halves of the equation — how much they spend in a year, and how many people that spending puts to work.

HS2 in Britain publishes audited capital spending and a programme workforce figure every year.
The Réseau express métropolitain in Montréal, built by CDPQ Infra, published a jobs claim and periodic counts of workers on site. It is also the closest match anywhere to the way Alto has been set up.

Both land in the same place: roughly 2,200 to 3,300 people working for every billion dollars spent in a year.

Alto’s own published figures are $60 to $90 billion of capital over ten to fourteen years. That works out to $4.3 to $9.0 billion a year, which is around half the rate HS2 is spending at present. Applying the observed rate from those two projects to Alto’s own budget and schedule gives 13,000 to 21,000 people working on the programme in the central cases, and a ceiling near 30,000 if the project spends at the top of its range on the fastest possible build.

We then rebuilt the whole 50,000 the way the appendix says it is built — adding supply chain and induced work on top of the people on site, using standard multiplier ratios.

Rebuilding the 50,000 — ten-year build at the top of Alto’s capital range
Layer	What it means	People
Owner and engineering	Alto’s own staff and the designers	700 – 2,000
Site and contractor	People building the railway	16,000 – 17,300
Supply chain	Staff at firms supplying the project	14,400
Induced	Jobs supported when those wages are spent	18,200
Total	Alto publishes 50,000	50,600

Initiative estimate, built from HS2 and REM published spending and workforce figures and standard supply-chain and induced multiplier ratios, applied to Alto’s own published capital range and schedule.

What the check found

50,600, against Alto’s published 50,000. The two agree to within one per cent, using the same three categories Alto names in its own appendix, by a route that borrows nothing from Alto’s model. On that basis the figure stands up as an output of the model that produced it.

What the agreement also does is fix what is inside the number. On Alto’s own budget, roughly 18,000 of the 50,000 are people working on the railway. The rest — nearly two thirds — are jobs at supplier firms and jobs supported when wages are spent again. Fewer than four in ten are on the railway itself.

A second and completely separate check gives the same answer. Direct labour usually accounts for 30 to 40 per cent of spending on heavy civil construction. Applied to $75 billion over ten to twelve years, at a fully loaded cost of $100,000 to $140,000 per worker-year, that supports somewhere between 13,400 and 30,000 people, centred near 19,000. Two methods that share no inputs bracket the same range.

The other way of reading it

Turn the question round and the arithmetic bites. If 50,000 really meant 50,000 people working on the railway, the project would need to spend $15.2 to $22.7 billion every year — a programme of $152 to $273 billion, against the $60 to $90 billion Alto has published. That is close to the $142 billion the Initiative’s own cost model predicts for this corridor. On the arithmetic set out here, Alto’s employment claim implies a more expensive railway than the one Alto has costed.

The question the report leaves open

“50,000 full-time equivalent jobs during a ten-year construction period” can be read two ways. It can mean 50,000 full-time equivalents working in each year of the decade. Or it can mean 50,000 years of work in total, spread across the decade. The two readings are ten times apart, and the report does not say which is meant.

Only the first works arithmetically. The second would put the project at 0.67 job-years for every $1 million spent, against 2.6 at HS2 and 2.6 to 3.3 at the REM — roughly a quarter of the labour intensity of any comparable railway now being built. So this analysis treats the figure as an annual average, which is the reading that makes it defensible. A reader has no way to know without being told.

Two more things in the tables

Upper, not central

Both tables head their value column “upper estimate”. One appendix earlier, the $24.5 billion GDP figure is labelled a central estimate, drawn from a stated range of sensitivity tests. So a range exists behind the 50,000 as well. What has been published is its top. The Initiative has recorded the same pattern twice before in this report: ranges that appear in the commissioned studies but not in the public summaries.

The comparison figures have no source

Table 2 sets high-speed rail against the alternative, “high-frequency rail”, and credits that alternative with 44,000 construction jobs at a capital cost of $45 to $75 billion. Neither figure carries a footnote, a source or a method anywhere in the document. The implied job intensity is internally consistent with the high-speed figures, so the numbers do not look wrong. The point is that a reader has no way to check them.

This has been released before

Employment modelling for this corridor has been published once already, and what happened to it is worth knowing. The Joint Project Office — VIA Rail and the Canada Infrastructure Bank — produced a business case for High Frequency Rail, the slower predecessor to this project, in December 2021. It gives construction employment as 71,000 to 96,000 annual equivalent jobs. That is a third unit of measure again, different from Alto’s 50,000 and from the 51,000 in the 2025 announcement, but stated plainly enough that a reader knows what is being counted.

The Canada Infrastructure Bank released that document in full in November 2025. The same document, released under a separate access request, cuts the identical sentence: “an estimated ___ annual equivalent jobs could be created,” with the sentence left grammatical around the missing number and no exemption provision marked against it. We hold both versions.

So the same employment figure, for the same corridor, has been treated as releasable by one federal body and withheld by another. That is worth putting on the record now, before anyone argues that the modelling behind the 50,000 is too commercially sensitive to publish.

What we are asking Alto to publish

Alto holds all of this already. None of it would cost anything the organisation does not have.

Whether the 50,000 is an annual average, or a cumulative count of full-time-equivalent years.
How it splits across the three categories Table A4 names: direct, supply chain and induced.
The range the upper estimate was drawn from, and the central value within it.
The year-by-year profile across the ten-year construction period.
The assumption made about imports and Canadian content in the input-output run.
The capital and operating spending profile that was fed into the model.
The source of the 44,000 jobs and the $45 to $75 billion attributed to high-frequency rail in Table 2.

And, more simply than any of that: carry the appendix definition alongside the number, wherever the number appears.

How to read the numbers on this page

Every figure attributed to Alto, HS2, CDPQ Infra, the California High-Speed Rail Authority or a Government of Canada release is quoted from the published source listed below, and can be checked there.

Every other figure on this page is a calculation by the Initiative from those published inputs, and is described as an estimate where it appears. The reconstruction is an estimate rather than a measurement: it applies labour intensity observed on two comparator projects, together with standard supply-chain and induced multiplier ratios, to Alto’s own published capital range and schedule.

Where Alto has not published something, this page says so rather than inferring it, and makes no claim about why any particular figure was or was not published.

Read the full paper

50,000 Jobs? — the research paper (PDF)

Ten pages. Sets out the method in full, the year-by-year spending and workforce figures for HS2 and the Réseau express métropolitain, the layer-by-layer reconstruction, the job-years-per-dollar comparison against California and the US Federal Highway Administration, and the complete source list.

Sources and notes

1Alto, Canada’s Moment: The Economic Opportunity of High-Speed Rail, August 2026. Section 4.3.3 and Tables 7 and A4 (50,000 full-time equivalent jobs across direct, supply chain and induced effects, ten-year construction period, upper estimate; $86 billion value added; $23 billion tax revenue). Appendix A.2 methodology box (2019 Statistics Canada input-output model; static; excluded from the benefit-cost ratio; no account taken of labour shortages or capacity limits). Table A2 ($24.5 billion GDP, central estimate). Table 2 (44,000 construction jobs and $45 to $75 billion capital for high-frequency rail, unsourced). Section 4.3.3 sidebar (Canadian materials commitment).

2Prime Minister of Canada, news release, 19 February 2025 (over 51,000 jobs during construction; GDP gain of up to $35 billion annually).

3Transport Canada, news release, 12 December 2025, naming Ottawa–Montréal as the first segment (51,000 jobs during construction; up to $35 billion in GDP).

4HS2 Ltd, Annual Report and Accounts 2022–23 to 2025–26 (capital expenditure and workforce), and six-monthly reports to Parliament, December 2024, July 2025 and May 2026 (jobs supported, supply chain businesses, spend to date, cost range and schedule).

5CDPQ Infra, REM fact sheet and project pages; REM news releases of April 2018, November 2020 and June 2021 (34,000 jobs; over 30,000 direct and indirect jobs; more than 2,000 and then more than 3,000 workers on site).

6California High-Speed Rail Authority, economic impact analyses for FY2023–24 and FY2024–25, and the March 2024 release on construction jobs and daily dispatch.

7US Federal Highway Administration, Employment Impacts of Highway Infrastructure Investment (13,000 job-years per US$1 billion; 64/36 split between direct-and-indirect and induced).

8Exchange rates: Bank of Canada daily rates, 1 September 2026. 1 GBP = C$1.8795; 1 USD = C$1.3896. Per-kilometre cost comparison uses the Initiative’s own ECI/CFI cost model.

ALTO HSR Citizen Research Initiative Independent, non-partisan citizen research on the proposed Toronto–Québec City high-speed rail corridor. This page is a plain-language summary of the research paper 50,000 Jobs?, September 2026. The full paper sets out the method, the tables and the complete source list. Nothing on this page is a statement about the motives or conduct of any person or organisation. It is an analysis of published figures and of what those published figures do and do not say.

September 5, 2026

Hours are not dollars

Hours Are Not Dollars

Almost none of ALTO’s $49.5 billion is money. It is time — and a saved hour cannot service a loan. Here is what that figure actually is, how it was built, and why it says nothing about who pays for the railway.

ALTO HSR Citizen Research Initiative · Economics Explainer · August 2026 · Companion to the audit It Left the Rules Behind

⚠ Where the Number Sits

In August 2026 ALTO published Canada’s Moment: The Economic Opportunity of High-Speed Rail, reporting $49.5 billion in benefits against a construction cost of $60 to $90 billion. Those benefits are not money in a bank account. They are mostly hours — time that travellers would have spent on the road or at an airport — stretched over sixty years and converted into today’s dollars.1

The tool that does the converting is called a discount rate. ALTO uses 3.5 per cent a year. Change that one number and the headline changes by tens of billions, without a single train or passenger changing.

In One Paragraph

The $49.5 billion is a measure of worth, not of funds. The tool that produces it, a discount rate, answers the question is this worth doing? It does not answer the question who pays, and how? Those are separate ledgers, and ALTO’s report is detailed on the first and thin on the second. This explainer sets out what the rate does, shows the arithmetic openly, and then follows the money to the place the appraisal never goes: the difference between what it costs the government to borrow and what a private partner needs to earn.

One finding runs against the grain and is stated here first. Two of the adjustments ALTO leaves out would have made its benefit figure larger, not smaller. The problem is not that the number is tilted. The problem is that a reader is given one number, no range, and no way to know that any of these choices were made.

Start Here

What a discount rate is, in ordinary words

Ask yourself a simple question. Would you rather have $100 today, or $100 in forty years? Almost everyone takes it today. The money is useful now, the future is uncertain, and by 2066 we will probably all be somewhat better off anyway, so $100 will matter a little less to us then than it does now.

Economists turn that instinct into a percentage. A discount rate shrinks future amounts back to what they are worth to us today, by a fixed amount each year. At 3.5 per cent, a benefit arriving sixty years from now counts for about 13 cents on the dollar. At 8 per cent, the same benefit counts for about one cent.

That is the whole mechanism. It sounds technical and it is arithmetically simple. But it matters enormously for a railway, because of when the money and the benefits arrive.

13¢

what a dollar of benefit in year 60 is worth today at ALTO’s 3.5 per cent

23¢

the same dollar at 2.5 per cent, the rate ALTO’s own cited manual requires be tested

1¢

the same dollar at 8 per cent, the rate identified in 2007 Treasury Board guidance

The timing is what makes this decisive. Construction money is spent early — from 2029 through the early 2040s — so it is barely shrunk at all. The benefits arrive later and keep arriving for sixty years, so they are shrunk heavily. Anything that changes the rate therefore hits the benefit side hard and the cost side hardly at all. A project’s whole case can move from comfortable to marginal without anything physical changing.

The Arithmetic, Shown Openly

How much the answer moves

The table below is the Initiative’s own arithmetic, not a re-run of ALTO’s model. It takes a steady stream of benefits running for sixty years, beginning fifteen years from now, and asks what that stream is worth in today’s dollars at different rates. The last column simply scales ALTO’s published $49.5 billion by the same proportion, to show the size of the swing.

Discount rate used	Value of the stream	Relative to 3.5%	$49.5B scaled
2.5 per cent	21.34	1.43×	$71.0B
3.0 per cent	17.76	1.19×	$59.1B
3.5 per cent — ALTO’s rate	14.89	1.00×	$49.5B
UK declining schedule	15.61	1.05×	$51.9B
5 per cent	9.11	0.61×	$30.3B
7 per cent	5.09	0.34×	$16.9B
8 per cent	3.90	0.26×	$13.0B

Assumptions, stated so the arithmetic can be checked: a level benefit stream of one dollar per year, sixty years of operation beginning in year 16, discounted back to a year-zero base. ALTO’s real benefit stream ramps up rather than running level, so the exact figures would differ; the proportions are what matter here. The scaled column is illustrative and is not ALTO’s number at those rates.

Read the middle rows first. At 8 per cent, the same railway carrying the same passengers saving the same hours produces a benefit figure roughly a quarter the size. At 2.5 per cent it produces one roughly forty per cent larger. Nothing about the trains changed. Only the parameter changed.

This is why appraisal manuals require the calculation to be repeated at more than one rate and the results published as a range. It is not a bureaucratic formality. It is the only way a reader can tell whether a case is robust or whether it depends on a parameter choice.

Where 3.5 Per Cent Comes From

A number with a family tree

ALTO’s report attributes its rate to one source: the Business Case Manual Volume 2: Guidance, published by Metrolinx, the Government of Ontario’s transit agency for the Toronto and Hamilton region.2 That manual sets a social discount rate of 3.5 per cent, alongside an evaluation period of five to sixty years.

The 3.5 per cent figure is not original to Metrolinx. It is the rate used by HM Treasury in the United Kingdom, and the Treasury publishes exactly how it was assembled. Three judgements are added together:

0.5 per cent for simple impatience. People prefer good things sooner. Half a percentage point is the allowance for that.

1.0 per cent for the risk that the future does not arrive as expected. Wars, pandemics, collapses. A benefit promised in 2080 might never materialise, so it is discounted a little further.

2.0 per cent because people in the future will be richer. If incomes rise about 2 per cent a year, our grandchildren will be considerably better off than we are, and an extra dollar will matter less to them than it does to us. This is the largest of the three, and the most contestable.

Those three add to 3.5.3

Notice what the rate is not. It is not a market price, an interest rate, or anything anyone can look up. It is a set of judgements about how much weight to give people who are not yet born — and every one of the three is disputed by serious people. That is not a criticism of the figure. It is the reason a serious appraisal shows what happens when the figure moves.

The detail that cuts in ALTO’s favour

HM Treasury does not apply 3.5 per cent forever. The rate steps down to 3.0 per cent for years 31 to 75, and 2.5 per cent thereafter,3 and the Treasury’s supplementary guidance instructs practitioners in the same terms: the standard 3.5 per cent for years 1 to 30, and 3.0 per cent for years 31 to 75.4 The reason is uncertainty: the further out you look, the less confident anyone can be in the parameters, and the lower the rate should be.

ALTO discounts a sixty-year stream at a flat 3.5 per cent throughout. Applying the stepped-down schedule instead would have made ALTO’s benefit total about five per cent larger, as the fourth row of the table above shows. This is a conservatism in ALTO’s favour, and it should be credited as one. It is recorded here because a reader assessing where a federal appraisal input came from deserves the whole picture, including the parts that do not fit a critical narrative.

The Canadian Comparison

What the federal government uses, and the gap where a manual should be

Canada has approached the same question from the opposite end, and it is worth understanding the difference, because it produces a far higher number.

The British method asks a question about values: how much should we care about the future? The Canadian method asks a question about alternatives: what else could this money have done? If public money invested elsewhere in the economy would have earned, say, 8 per cent, then a project has to clear that bar to be worth funding — otherwise the country was better off doing the other thing. That is what economists mean by the opportunity cost of capital.

Neither question is wrong. They are simply different questions, and the second one produces a much tougher test than the first.

The Treasury Board’s 2007 guidance identified 8 per cent as the appropriate rate, with sensitivity tests at 3 and 10 per cent, on that opportunity-cost basis.5 The current federal Policy on Cost-Benefit Analysis still directs departments to use the opportunity cost of capital as the discount rate, permitting a social rate only in defined cases — including where impacts run fifty years or more — and requiring that even when a social rate is used, results using the opportunity cost of capital must also be reported.6

Two honest qualifications belong here, and neither is small. First, that federal policy governs regulations, not capital projects, so it does not bind ALTO. Second, the current edition of the Treasury Board guide is no longer published on canada.ca and is available only through an internal government wiki page,7 so the Initiative has not been able to verify the figure it now specifies.

And the federal manual for transport projects specifically? Transport Canada’s guide to benefit-cost analysis dates from 1994.8 Thirty-two years later, there is no current, public federal appraisal manual for a project of this kind. That absence is very likely why a national railway is being appraised using a provincial transit agency’s parameters — and it is a finding about the machinery of government rather than about ALTO.

Even the academic case for 3.5 per cent has conditions

The most cited Canadian argument for a 3.5 per cent rate comes from the economists Boardman, Moore and Vining, who reject the 8 per cent approach. So there is a respectable Canadian case for ALTO’s rate. But it is a conditional case, and the conditions are specific.

Condition one: the project runs under fifty years. Beyond that, they recommend a rate that steps down over time, for the same reason the UK Treasury does — nobody can see that far ahead with confidence.

Condition two: the project must not pull money away from private investment. The money for a public project comes from taxes or borrowing, and it would otherwise have been used by someone else. Some of it would have been spent, and some would have been invested — a business expansion, new equipment, a factory. Those two are not equivalent. A dollar diverted from someone’s spending costs the economy that one dollar. A dollar diverted from investment costs more, because that investment would have gone on producing returns for years afterwards.

And if the project does pull money from investment, there is a fix. Rather than argue about the rate all over again, you take the portion of the cost that displaced private investment and mark it up by 26 per cent before putting it in the calculation — because that is roughly what the lost investment was worth to the economy over time. Economists call the 1.26 multiplier a shadow price of capital. It is simply a way of using a generous discount rate honestly, instead of using it to pretend the money was free.5

ALTO’s appraisal period is sixty years, which fails the first condition outright. Whether a $60 to $90 billion draw on Canadian capital displaces private investment is a real question, not a technicality — and the mark-up would apply only to the share that does, not to the whole sum. Neither condition is mentioned in the report.

The pattern is the one the companion audit It Left the Rules Behind describes: a number travels, and the conditions attached to it stay behind.

The Precedent

The last time anyone published these numbers for this corridor

ALTO’s stated reason for publishing no benefit-cost ratio is that the cost estimate is not yet mature enough to support one. It is worth knowing that a predecessor project on the same corridor did publish one, at a comparable stage, and published the funding ledger alongside it.

In December 2021 the Joint Project Office — a body formed by VIA Rail and the Canada Infrastructure Bank — completed a Business Case Update for High Frequency Rail, the slower, cheaper predecessor to ALTO between Toronto and Québec City. It was released through access to information by the Canada Infrastructure Bank in November 2025.16

What the 2021 business case published	Figure
Capital cost, with electrification (2020 prices)	$27.71B
Projected revenue over 30 years (2019 prices)	$33.7B
Operations, maintenance and rehabilitation, 30 years	$32.5B
Net present value over 30 years	−$21.1B
Benefit-cost ratio	~0.13
Expanded benefit-cost ratio	~0.4
Public subsidy over 30 years, by delivery model	$37.1B to $42.2B

Source: Joint Project Office, High Frequency Rail Business Case Update V.002, 10 December 2021. Ratios at Table 14, page 43; capital, revenue, lifecycle and net present value figures in the executive summary, pages 7 and 8; subsidy comparison at Table 4, page 8.

A benefit-cost ratio of 0.13 means about thirteen cents of measured benefit for every dollar of cost. The wider figure of 0.4 is what the same table calls an expanded ratio, and the difference between the two is worth understanding, because it is the larger of the two numbers.

The expansion adds two items. One is agglomeration — the economic gain from businesses being better connected — worth $0.3 to $0.9 billion. The other, worth $5.6 to $7.6 billion, is a resource correction: the fares new passengers would pay, counted as a benefit because they arrive as revenue for the operator. That single item is larger than the journey time savings and all the external benefits put together. The business case itself notes that both are relatively new to Canadian economic appraisal, which is why it reports the ratio with and without them.

The same two sources, five years apart

The 2021 economic case states where its parameters came from: the social discount rate, the value of time and the value of external impacts were taken from a combination of Metrolinx and Ministère des Transports du Québec guidance. Those are the same two sources ALTO cites in 2026.

So the identical parameter lineage, applied to a $27.71 billion version of this corridor, produced a published ratio of 0.13. Five years later, on a project costing two to three times as much, the same two sources are cited and no ratio is published at all.

And it kept the two ledgers apart

The 2021 document also shows how the distinction this page has been drawing is meant to work in practice. Its net present value calculation used a discount rate of 2.5 per cent, sourced explicitly to the ten-year average of the 30-year Government of Canada benchmark bond — a financing rate, taken from what the government actually pays to borrow. Its economic case used the social parameters from Metrolinx and MTQ. Two questions, two rates, both disclosed, in a single document.

Three cautions, stated plainly. High Frequency Rail is not ALTO: different technology, different speed, a $27.71 billion cost rather than $60 to $90 billion, and a thirty-year evaluation rather than sixty. The JPO described its own results as preliminary. And none of these figures transfer to ALTO by arithmetic. What the document establishes is narrower and harder to set aside: a benefit-cost ratio can be produced for a project on this corridor at this stage of development, because one was.

One further point belongs on the record. The identical document was also released under a separate access request, and in that version the whole net present value section, the capital cost figure, the revenue figure and both ratios were blacked out — along with the subsection titles of the Economic Case within the table of contents, and the construction employment figure in the executive summary. No exemption provision is marked against any of it.17 Same document, same date, two releases, opposite outcomes.

Following the Money

Three different rates, and only one of them is in the report

Here is the heart of it. People use the phrase “the discount rate” for three quite different things, and conflating them is how an appraisal result gets mistaken for a financing plan.

1. The appraisal rate — 3.5 per cent

Used to decide whether a project is worth doing. No money moves because of it. It turns hours saved and collisions avoided into a single present-day figure so they can be compared with the cost. Nobody charges it, nobody pays it, and no bank uses it.

2. What it costs the government to borrow

Real money, actually paid. When the federal government borrows for thirty years it has been paying in the region of 3.7 to 3.9 per cent during 2026. Take off inflation, which the Bank of Canada aims to hold at 2 per cent, and the true cost of the money is roughly two per cent a year.9 If the state simply builds the railway and holds it, this is what the borrowing actually costs, and it is lower than the appraisal rate.

3. What a private partner needs to earn

Considerably more. If a pension fund or infrastructure investor builds the railway, it is putting its own money at risk — the risk that construction costs more than planned, or that too few people ride. It requires a return for carrying that risk, and that return is paid out every year for decades. This is the rate that decides what the public actually hands over, and it appears nowhere in ALTO’s economic report.

The gap between the second and the third is the entire public-private question. If the government borrows at 2 per cent and builds the railway itself, that is what the money costs. If a private partner builds it instead and needs 8 per cent, someone has to make up the difference — every year, for as long as the arrangement lasts. That someone is the public.

So a project can pass the 3.5 per cent test comfortably and still require very large annual public payments to get built. The appraisal will go on saying “worth doing.” It will never say who writes the cheque, for how long, or at what return.

Why the $49.5 billion cannot pay for anything

This is the point most easily missed, and it is not a technicality. Nearly all of ALTO’s benefit figure is not cash. It is hours of travel time, collisions that did not happen, tonnes of emissions avoided. These are real and they matter. But a saved hour cannot service a loan, meet a payroll, or renew a worn rail.

The money that actually funds a railway comes from two places only: fares, and government payments. ALTO’s report handles that second ledger in a few pages, supported chiefly by the operating margins of three foreign railways, and it publishes no fare, no revenue figure and no farebox recovery ratio. So the document is expansive about whether the project is worth doing and close to silent about how it would be paid for.

A Canadian Example, Fully Documented

How the Montréal REM is actually funded

The Réseau express métropolitain is a 67-kilometre automated light metro in Greater Montréal, built, owned and operated by CDPQ Infra, a subsidiary of the Québec pension fund manager. It is the clearest Canadian illustration of what the third rate looks like once it becomes money, and its terms are public.10

Who put up the capital

CDPQ Infra $2.95B; the Government of Québec $1.283B; the Government of Canada $1.283B; Hydro-Québec $295M; the regional transit authority $512M. The construction estimate rose from $6.3 billion in 2018 to $7.95 billion by 2023, an increase CDPQ Infra absorbed under its agreement.11

How the money returns

Not through fares. The regional transit authority pays CDPQ Infra 72 cents for every kilometre every passenger travels, indexed annually to the Consumer Price Index. That single rate covers construction, operation and long-term maintenance.12

If ridership beats forecast

The rate steps down. CDPQ Infra has described trips beyond 15 per cent above forecast being paid at roughly 57 cents, and trips beyond 40 per cent above forecast at the user fare itself.13

The two return targets

8 to 9 per cent for CDPQ Infra. 3.7 per cent for the governments. Both were set at the outset and publicly reaffirmed during construction.14

That pair of numbers is the whole point of this section, made concrete. The same railway, the same track, the same passengers — and two participants requiring returns that differ by more than double. The difference is not a rounding error in an appraisal. It is paid out, in cash, on every passenger-kilometre, for as long as the agreement runs.

Why this case and not another. The REM is not an analogy picked at random. CDPQ Infra leads Cadence, the consortium selected in February 2025 as ALTO’s private development partner. AtkinsRéalis — formerly SNC-Lavalin, a member of the group that built the REM and, with Alstom, of the group that supplies and operates its trains — is also a Cadence member. The other Cadence members are SYSTRA Canada, Keolis Canada, SNCF Voyageurs and Air Canada.18 The REM is the lead sponsor’s own model, which CDPQ Infra presents publicly as an innovative approach to delivering public infrastructure. That is what makes it the most informative available guide to how a private partner’s return might be priced here.

An important caution. ALTO is nonetheless not the REM, and this is not a prediction. Canada is to retain permanent ownership of the ALTO network, which was never the REM arrangement; the project is in a co-development phase running to 2029; and no payment mechanism has been disclosed. Cadence is a different group with different members and a different contract. The REM is offered as the one Canadian case where the arithmetic of a private partner’s return has been made public — which is exactly what has not yet happened for a project several times its size.

Notice what a payment mechanism does with risk. Because CDPQ Infra is paid per passenger-kilometre, a shortfall in riders is a shortfall in its own revenue — the investor carries the demand risk. Under a different structure, where the public pays for the railway simply being available, a shortfall in riders changes nothing the partner receives and everything the public pays.

Same railway, same disappointing ridership, opposite consequences. Which of those applies to ALTO has not been published.

Limits of This Explainer

What this does not claim

On the rate

3.5 per cent is not wrongIt is a mainstream, well-supported choice for long-lived public investment. This explainer does not argue that ALTO’s rate is too low.

Two omissions favour ALTOBoth the stepped-down schedule and the sensitivity test its cited manual requires would have produced a larger benefit figure. The omissions do not all run one way.

The arithmetic is illustrativeThe table uses a level benefit stream and a stated start year. It shows the shape of the sensitivity, not a recalculation of ALTO’s result.

The 2021 ratios are not ALTO’sHigh Frequency Rail was a different and cheaper project assessed over thirty years, and its authors called the results preliminary. Those figures are cited as evidence that a ratio can be produced at this stage, not as an estimate of ALTO’s.

On the comparisons

Nothing here binds ALTOMetrolinx guidance, UK Treasury practice and federal regulatory policy carry no legal force over this project. They are offered as points of comparison, one of which ALTO chose to cite itself.

The federal figure is unverifiedThe 8 per cent rate is documented from 2007 guidance through peer-reviewed sources. The current edition of that guide is not publicly posted, and the Initiative does not assert what it now specifies.

We do not say whyWhere the report does not state something — a fare, a payment mechanism, a sensitivity test, a range — this page says so rather than inferring it, and makes no claim about why any figure was or was not published, or about the intentions of anyone who prepared it.

This is a public report, not a business caseA submission to Cabinet in 2029 may contain material this document does not. What is examined here is what has been placed in public.

What Would Settle It

Two questions, answerable without releasing a model

1. Who absorbs it if the passengers do not come?

Not a forecasting question but a contract question. If a partner is paid per passenger, a shortfall reduces its return. If it is paid for availability, a shortfall costs the partner nothing and the public a great deal. Identical ridership, opposite outcomes — and ALTO has published neither the mechanism nor the cost of capital behind it.

2. What fare, and what revenue?

No fare level, average yield or farebox recovery ratio appears in eighty-three pages. Without one, the funding question cannot be examined by anyone outside the project.

Neither requires access to ALTO’s models, cooperation from its staff, or agreement about what the correct discount rate for a national railway ought to be. Both are answerable from work already done.

A third question — whether the calculation was ever run at any rate other than 3.5 per cent — belongs to the companion audit It Left the Rules Behind, which sets out the full list of tests the cited manual requires at this project’s scale and which of them appear in the report.

Sources

Primary documents

ALTO, Canada’s Moment: The Economic Opportunity of High-Speed Rail, August 2026, 83 pp. Discount rate, sixty-year appraisal period and price base in the Appendix A methodology box, sourced at footnote 65 to the Metrolinx manual; capital cost and AACE Class 5 estimate at pp. 5 and 65; direct-benefit tables headed “upper estimate”. Analysed in full in the Initiative’s companion brief Two Parameters, None of the Conditions, summarised at It Left the Rules Behind.

Metrolinx, Business Case Manual Volume 2: Guidance, August 2021, 222 pp. Economic parameters at Table 5.8: social discount rate 3.5 per cent, evaluation period five to sixty years, single blended value of time. Verified as the current edition, 21 August 2026. metrolinx.com

HM Treasury, Review of discounting in the Green Book: Terms of Reference, 16 December 2025. Sets out the derivation of the 3.5 per cent Social Time Preference Rate. The Treasury specifies four parameters — pure time preference, catastrophe risk, the elasticity of marginal utility and the growth rate — the last two of which multiply to the 2.0 per cent component described above as a single judgement. and the declining schedule of 3.0 per cent for years 31 to 75 and 2.5 per cent thereafter. gov.uk

HM Treasury, Green Book supplementary guidance: discounting, updated 5 February 2026. Instructs practitioners to use 3.5 per cent for years 1 to 30 and 3.0 per cent for years 31 to 75. gov.uk (PDF)

A. E. Boardman and M. A. Moore, “The Social Discount Rate for Canada Based on Future Growth in Consumption,” Canadian Public Policy, vol. 36 no. 3 (2010), pp. 325 onward. Records the Treasury Board Secretariat’s 2007 interim recommendation of an 8 per cent social discount rate with sensitivity rates of 3 and 10 per cent on a weighted social opportunity cost of capital basis; argues instead for 3.5 per cent, conditional on a horizon under fifty years and no crowding out of private investment, with a shadow price of capital of 1.26 applied to investment flows, and a declining schedule beyond fifty years. Canadian Public Policy

Treasury Board of Canada Secretariat, Policy on Cost-Benefit Analysis, in force since 1 September 2018. Requires departments to use the opportunity cost of capital specified in the TBS guide, with a social discount rate permitted in defined cases including impacts of fifty years or more, and requires opportunity-cost results to be reported in any event. canada.ca

Treasury Board of Canada Secretariat, “Requirements for developing, managing and reviewing regulations,” canada.ca, page updated 26 November 2025, accessed 21 August 2026. States that the most current version of Canada’s Cost-Benefit Analysis Guide for Regulatory Proposals is available exclusively on the Cabinet Directive on Regulation GCwiki page. The 2022 edition remains catalogued in Government of Canada Publications as an archived document. canada.ca

Transport Canada, Economic Evaluation Branch, Guide to Benefit-Cost Analysis in Transport Canada, Ottawa, 1994. Catalogued in the Transport Research International Documentation database. TRID

Bank of Canada, selected benchmark bond yields, accessed August 2026; Bank of Canada policy interest rate held at 2.25 per cent through mid-2026 against a 2 per cent inflation target. Long-bond yields move daily and should be checked against the source rather than quoted from this page. bankofcanada.ca

10.

Réseau express métropolitain, “Information about the agreement with the ARTM and its rate mechanisms.” Sets out the 72-cent per passenger-kilometre invoice to the regional transit authority, the reduction once ridership projections are exceeded, and the turnkey scope covering construction, operation and long-term maintenance. rem.info

11.

Capital structure as reported on award of the construction contracts: CDPQ Infra $2.95B, Government of Québec $1.283B, Government of Canada $1.283B, Hydro-Québec $295M, ARTM $512M, against a construction cost of $6.3B. The estimate was revised to $7.95B in September 2023, with CDPQ Infra absorbing the increase under its agreement with the Québec government. International Railway Journal

12.

Gouvernement du Québec, ARTM and CDPQ Infra, “Release of the management and implementation agreement and of the integration agreement for the Réseau express métropolitain,” 23 April 2018. Confirms the $0.72 per passenger-km base cost and annual indexation to Canada’s Consumer Price Index, and the cap limiting additional municipal costs to roughly $45 to $60 million a year in then-current dollars. quebec.ca

13.

CDPQ Infra, “7 myths about the REM de l’Est,” February 2022. Describes the ridership relief mechanism: the rate falls by about 20 per cent, to roughly $0.57, for trips above 15 per cent over forecast, and equals the user fare for trips above 40 per cent over forecast. Published in the context of a later project; the mechanism described is the REM’s. cdpqinfra.com

14.

Réseau express métropolitain, semi-annual project update, 3 June 2021. Reaffirms the 72-cent rate set in the 2018 agreement and states the performance targets: 8 to 9 per cent for CDPQ Infra and 3.7 per cent for the government partners. rem.info

15.

Discounting arithmetic in this explainer computed by the Initiative on the stated assumptions: a level annual benefit stream, sixty years of operation beginning in year 16, discounted to a year-zero base; the declining-schedule row applies 3.5 per cent to years 1 to 30, 3.0 per cent to years 31 to 75, per source 3.

16.

Joint Project Office (VIA Rail Canada and the Canada Infrastructure Bank), High Frequency Rail Project: Business Case Update, V.002, 10 December 2021, 150 pp., released by the Canada Infrastructure Bank under the Access to Information Act, November 2025. Capital cost breakdown and 30-year revenue at p. 7; benefit-cost ratio, net present value and the Table 4 subsidy comparison at p. 8; economic appraisal parameters sourced to Metrolinx and MTQ guidance at p. 40; incremental capex and opex at Table 9; other impacts at Table 12; impact results and both ratios at Table 14, p. 43; net present value assumptions, including the 2.5 per cent discount rate sourced to the ten-year average 30-year Government of Canada benchmark bond, at Figure 38, p. 85.

17.

The same document released as Annexe A to access request 22-2207 (148 pp., stamped Demande d’accès à l’information #22-2207 AI(D)). In that version, section 9.7 Net Present Value Analysis survives as a heading at p. 84 with pp. 84–86 otherwise blank; section 9.8 Financial Structuring at p. 87 is withheld in full; the capital cost and 30-year revenue sentences are truncated mid-clause at p. 21, leaving the grammar intact around the removed figures; and the subsection headings of section 7 Economic Case are withheld within the table of contents, together with the title of section 8 and all of its subsections, which appear as bare dot leaders against pp. 40–43 and 44–63. The construction employment sentence at p. 21 is severed in the same way: “an estimated ___ annual equivalent jobs could be created.” That figure — 71,000 to 96,000 annual equivalent — is disclosed in full in the Canada Infrastructure Bank release at note 16. No exemption provisions are marked against any of the severed passages. Both versions held by the Initiative.

18.

Cadence consortium membership and CDPQ Infra’s leadership role: Cadence, “About us,” and CDPQ Infra, “Alto high-speed rail,” both accessed August 2026; consortium announced as preferred private development partner 19 February 2025, co-development agreement signed March 2025. AtkinsRéalis (formerly SNC-Lavalin) was a member of NouvLR, which held the REM engineering, procurement and construction contract, and of the group now operating as Pulsar with Alstom under the rolling stock, systems, operations and maintenance contract. cadence.info

August 21, 2026

Ready to tender

Ready to Tender, Not Yet Approved

Cadence has opened the procurement for the first segment of ALTO — while its own notice says the project is not yet approved.

ALTO HSR Citizen Research Initiative · Procurement Brief · Published July 2026 · ALTO consultation closed April 24, 2026

⚠ What the document says

On June 23, 2026, Cadence — the private partner chosen to develop ALTO — published a Preliminary Notice to Market for the Ottawa–Montreal segment, the first part of the line to be built. It sets out the contracts, the delivery models, and a tendering schedule that starts this summer. Cadence PNM

The same notice states that construction has “no official launch date” and that the entire build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment.” In other words: the machinery to build this is being switched on before the decision to build it — and the money to pay for it — has been confirmed.

The point in one sentence

You do not need an access-to-information request to see this one. It is a public document, unredacted, published by the developer itself — and on its own pages it does two things at once: it commits the construction industry to a two-year tendering calendar for the project’s biggest contracts, and it confirms that the project is not yet funded, not yet finally approved, and does not yet have a confirmed start date.

This is the same sequence this Initiative has documented at every earlier stage: the commitment comes first, the decision that would justify it comes later. What is new is that it is now happening in the open, in the developer’s own words, rather than in a briefing note released years after the fact.

None of this settles whether high-speed rail should be built. It is a question about order of operations — whether a project should be this far into procurement before the public analysis, the final business case, and the funding decision are in place.

Read the source

Cadence Preliminary Notice to Market — Central Segment

A public document (document no. ALTO-CPDP-00000-PW-080000-500BC10-000001F), issued June 2026 by Projet Cadence Rail s.e.c. Available in French and English.

Download PDF

What it is

A tender calendar, not a green light

A “Preliminary Notice to Market” is a signal to construction firms: here is the work that is coming, here is roughly when it will be tendered, start putting your teams together. Cadence is careful to say it is not a formal call for bids and not a commitment to buy anything. That caution is worth taking at face value — but it cuts both ways. The document is not a decision to proceed; it is the paperwork that gets the supply chain ready to proceed. And it is being issued now, ahead of the decision that determines whether there is anything to proceed to.

The notice is explicit about that gap. It says construction is “contemplated to begin in 2029–2030, although no official launch date has been confirmed,” and that the build-and-operate phase — the phase where the line actually gets built — happens only “subject to the government of Canada’s final confirmation of the investment.” Yet the tendering timetable it publishes does not wait for that confirmation. It begins in the summer of 2026.

Summer
2026

first major tender opens (trains), with stations and the Montreal tunnel to follow through 2027

Cadence PNM, Table 2

2029–30

construction “contemplated,” but with no confirmed start date

Cadence PNM

Not yet

federal investment decision — the build phase is “subject to” it

Cadence PNM

The order here is the whole story. Under any ordinary reading of how a public project should work, the sequence is: decide whether to build it, confirm the money, then tender the work. This notice runs two of those steps in parallel — the tendering starts while the decision and the money are still described, on the same pages, as outstanding.

The Two Columns

What the notice commits to, and what it leaves open

The clearest way to read the document is to line up what it treats as fixed enough to build a procurement schedule around against what it says is still undecided. Both columns are drawn from the same notice.

Treated as ready to tender	Still described as undecided
The contract packages. The notice sets out more than seventeen contract packages (WP1–WP17) — trains, signalling, stations, the Montreal access tunnel, two major bridges, and the track itself — each with a delivery model already assigned.	The final route. The “more precise corridor” is still promised for autumn 2026. For the Toronto–Ottawa segment, the notice leaves open the choice between a northern route through the Canadian Shield and a southern route through farmland — unresolved.
The timetable. A tender calendar running from summer 2026 (trains) through 2027–2028 (tunnel, bridges, civil works), package by package.	The start date. Construction has no confirmed launch date; 2029–2030 is described only as “contemplated.”
The delivery company. A dedicated entity, “InfraCo,” led by CDPQ Infra, is to be the contracting party for all the builders, with a second company, “OpCo,” to run operations.	The funding. The entire build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment” — which the notice does not report as having been given.
The technical spec. Design speed of 320 km/h; full electrification; no level crossings; a twin-bore tunnel roughly 15 km long and 9 m wide under the Riviere des Prairies and Mount Royal into Montreal.	The business case. No final business case has been published. The government’s own answer to Parliament in June 2026 was that the cost-benefit, net-present-value, and 30-year subsidy figures are “not finalized.”

Read together, the two columns describe a project detailed enough to hand contractors a two-year work plan, and unsettled enough that its route, its price, its business case, and its go-ahead are all still open. Those are not usually true of the same project at the same time.

The Machinery

What is actually being tendered

The notice divides the first segment into more than seventeen work packages. Most people following this issue do not need the package numbers — but the shape of the list matters, because it shows how much of the hardest and most expensive work is being brought to market before its design is finished.

The trains and the systems come first

The first tender out the door, in summer 2026, is for the rolling stock — roughly 60 trainsets. The signalling and control systems follow in the autumn. These are network-wide contracts: they are written for the first segment but carry options to extend to the rest of the line later.

The tunnel and bridges are tendered before they are fully designed

The single most demanding piece — the Montreal access tunnel, a twin-bore ~15 km bore under a river and a mountain into the downtown — is brought to market on an early-involvement basis because its design and ground conditions are not yet settled. Two major bridges (the Riviere des Mille-Iles and the Ottawa River) are in the same position. The riskiest, priciest work is being tendered at the point where the least is known about it.

The benefit numbers arrive without a source

The notice repeats headline figures — $24.5 billion a year in GDP, more than 50,000 construction jobs, 5,000 operating jobs — with no study, method, or citation attached to any of them. They are stated as facts in a document whose own government has told Parliament the underlying cost-benefit analysis is not finished.

Who Runs It

Who is in the room

The notice confirms the structure of the group that would build and run the line. This is a matter of public record from the document itself; it is set out here as fact, not as accusation.

Cadence is a consortium. The notice names CDPQ Infra (the infrastructure arm of Quebec’s public pension fund) as the lead infrastructure and equity member, with Air Canada as an equity member; SYSTRA and AtkinsRealis as the design leads; and Keolis and SNCF Voyageurs as the operations leads. The new delivery company, “InfraCo,” would be led by CDPQ Infra and would sit above and contract with all the individual builders.

Two features are worth noting plainly, both straight from the document. First, the same consortium that is designing the strategy also sits atop the company that will award and manage the contracts — while the notice’s own rules bar consortium members from bidding on the major contracts and require engineering firms to take part “as subcontractors.” Second, Air Canada — the airline whose routes this train is meant to compete with — is an equity holder in the developer, a position the notice describes by reference to the airline’s experience linking its flights with rail in Europe. Readers can weigh what those arrangements mean; the point here is only that the developer’s own notice puts them on the record.

The Fine Print

Three things easy to miss

The contracts would be in English only

The notice contemplates publishing the major contracts in English only, with French “courtesy versions” available on request — a notable choice for a federal project running through Quebec and Ontario. It justifies this by pointing to the English-language agreement Cadence signed with Alto.

You may not talk to the people who run it — except through Cadence

Firms taking part in the procurement are told they “must refrain from any direct communication” with “Project Stakeholders” — a category the notice defines to include landowners and communities — except as Cadence permits, on pain of disqualification.

A federal law puts the project largely beyond local jurisdiction

The notice cites the High-Speed Rail Act, which declares the railway a “work for the general advantage of Canada.” That designation places the project under federal jurisdiction and applies provincial and municipal law only “to the extent that such laws may validly apply” — the mechanism that narrows what municipalities and provinces can require.

None of these is hidden. They are in the notice, in plain sentences. They are collected here because, together, they describe a procurement that is moving quickly, keeping tight control of who may speak to whom, and operating under a statute that limits local say — all before the funding decision the same document says is still to come.

Where things stand · July 2026

Summary ledger

Reading the notice against the question a citizen would reasonably ask — is this project actually decided? — here is where the document leaves things.

Under way

Procurement. Tendering for the first segment’s major contracts begins summer 2026 and runs through 2028.

Under way

Delivery structure. InfraCo (led by CDPQ Infra) and OpCo are to be set up as the contracting and operating companies.

Stated but unsourced

Benefits. $24.5B annual GDP, 50,000+ construction jobs, 5,000 operating jobs — asserted with no study or method attached.

Not yet done

Final route. The precise corridor is promised for autumn 2026; the Toronto–Ottawa north/south choice is left open.

Not yet done

Business case. No final business case published; the government told Parliament the cost-benefit, NPV, and subsidy figures are “not finalized.”

Not yet done

Start date. Construction has no confirmed launch date; 2029–2030 is only “contemplated.”

Not yet done

The go-ahead. The build-and-operate phase is “subject to the government of Canada’s final confirmation of the investment” — not reported as given.

The top of that list is moving. The bottom of it is not. A procurement this advanced usually means a project this decided — and by the developer’s own account, this one is not. The notice asks the construction market to get ready to build something the government has not yet committed to build, at a price no one has finalized, on a route not yet chosen. The reasonable question for anyone following this is not whether the train is a good idea. It is why the building has started before the deciding.

Sources

Primary documents

Projet Cadence Rail s.e.c., Preliminary Notice to Market / Avis préalable au marché — Alto Project Central Segment, document no. ALTO-CPDP-00000-PW-080000-500BC10-000001F, dated June 23, 2026 (cover) / June 22, 2026 (milestone table). A public document issued in French and English. All quotations and figures in this brief — the tender schedule (Table 2), the “no official launch date” and “subject to…final confirmation of the investment” language, the WP1–WP17 package structure, the InfraCo/OpCo and consortium structure, the 320 km/h and tunnel specifications, the English-only contract approach, the stakeholder-communication restriction, and the GDP and jobs figures — are drawn from this notice. citizenresearch.ca (PDF)

Government of Canada, response to Order Paper Question Q-1191 (Scott Reid, Lanark–Frontenac), House of Commons, tabled June 17, 2026 — source for the statement that the project’s cost-benefit, net-present-value, and 30-year subsidy figures are “not finalized.”

ALTO / Cadence, statements that a more precise corridor is to be unveiled in autumn 2026, referenced in the notice’s appendix and in prior public communications.

This brief summarizes a single public document in plain language. It does not argue that high-speed rail should or should not be built; it examines the order in which this procurement is proceeding relative to the decisions that would authorize it. A fuller treatment of the notice appears in the Initiative’s Accountability Record.

July 3, 2026