The part about government being such a minority player - perhaps providing as little as one sixth of a project's funding - seems a bit unrealistic. At a 15-85 split, a project would have to deliver a return almost to the same degree as a fully private venture, and the investor's risk of 'losing it all' should the project fail is pretty much the same as a fully private venture. Sure, that lets government spread its $35B the farthest - I just wonder whether investors will bite, and whether it puts the profitability bar too high. 33-67 or 40-60 may be more typical.
In HFR's case, it may be a matter of what is funded, rather than how much. For instance, private investors may be happy to fund the terminals, because the real estate can be redeveloped if the trains don't generate a return. (Lucien Allier / Windsor Station being an example). But investorrs will not fund land acquisition around Kaladar, because the liquidation potential for moose pasture is zero. Track materials have scrap/resale value, but culverts don't. Assembling the land (with EA, nimby and indigenous relations demands) is high risk for private investors, but building on it is something more in their skills set. So - it may be a tailor made deal that has no precedent on how one would package some other type of infrastructure.
It's certainly a different exercise than just justifying the project and then funding from the public purse. Whether it's faster and easier, I'm not sure, but you do what you have to do.
- Paul