Canada opens race to host defence bank headquarters; proposals due Dec. 3

Ottawa has formally opened the selection process inviting Canadian cities to bid to host the headquarters of the multinational Defence, Security and Resilience Bank, a lender Canada is championing with the goal of having it operating in 2027.

What the bank will do; nine founding members to sign charter this month

The bank will provide long-term, low-cost financing for defence projects undertaken by the participating countries. Canada and eight other founding members are expected to sign the bank's charter in Luxembourg at the end of November. The founding countries are Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine. Canada was selected in April to host the bank by 19 countries that met in Montreal.

Proposals due Dec. 3; 50 staff at launch, growing to 700 within a decade

Proposals are due Dec. 3, must run to no more than 20 pages, and must include letters of support from provincial or territorial governments as well as financial and incentive disclosures. The headquarters must be able to house 50 employees to start in about 7,500 square feet, available within six months of selection, and grow to roughly 700 employees in about 500,000 square feet within 10 years. It must meet high standards for secure communications, specialized technology infrastructure, physical security and confidentiality. The bank will pay for its operations from its own resources, while applicant cities may be asked to provide support measures and services.

Toronto, Ottawa and others already pitching

Before the formal process opened, Toronto, Ottawa, Vancouver, Montreal and Halifax were already lobbying, promoting buildings that could house the bank and their cities' strengths. The selection will value an existing ecosystem of banking and financial expertise, which favours Toronto's pitch to place the bank in the country's financial district; access to defence companies, government and academia will also count, which could help the National Capital Region's case. Hosting the bank will involve entertaining international delegations, attracting workers, holding conferences and drawing investment activity.

The selection is being led by Doug Guzman, chief executive officer of the Defence Investment Agency, joined by a former member of the Privy Council Office and a business leader and senior executive. A shortlist will go to the Minister of Finance and the Prime Minister for the final decision. Britain will not join the bank and plans a separate procurement entity.

Source: The Globe and Mail.