3,500 jobs: 4 cities vie for new multinational defence bank

Four Canadian cities are escalating efforts to host the headquarters of a new multinational defence bank expected to create about 3,500 jobs and establish a global hub for defence financing.

Ottawa, Montreal, Vancouver and Toronto are competing to become home to the Defence, Security and Resilience Bank after Canada was selected as host country on April 29, following three rounds of expedited negotiations in Montreal involving 19 founding countries, according to The Globe and Mail. The institution is expected to open by the end of this year and could eventually include up to 40 participating countries, all NATO members and their allies, according to the report.

City officials and economic development agencies have been campaigning since at least November, when it was first reported that Canada was in the running to host the still‑to‑be‑finalised institution, according to the report. Their bids include pitch documents, public events, provincial endorsements and commitments from local businesses and universities.

With Canada confirmed as host country, the cities are now waiting for details from the federal government on how it will choose the winning location.

Recently, Prime Minister Mark Carney welcomed the largest order for a Canadian‑designed and produced commercial aircraft in history, after Airbus Canada secured a deal to supply 150 A220‑300 jets to Malaysian low‑cost carrier AirAsia. The government said the development will bring “high-paying work for thousands of Canadians”.

Calls for transparent federal selection process

Prime Minister Mark Carney will make the final decision, with an announcement expected in the coming months, likely during the summer, The Globe and Mail reported. In the meantime, each city is working to keep its proposal in front of federal decision-makers.

Montreal Mayor Soraya Martinez Ferrada has called for a transparent and objective process. “It will give a sense of objectivity around the process. And also, not having all the cities going around and screaming out loud that ‘We’re the best.’ At the end of the day, we all can give something to the bank, but what is it that the bank needs? And who can give that to the bank right now?” she said, according to The Globe and Mail.

Rod Phillips, vice‑chair of Canaccord Genuity Group Inc. and chair of economic development agency Toronto Global, which is supporting Toronto’s bid, told The Globe and Mail that the bank could significantly influence Canadian capital markets. “This is, prospectively, as big as mining was for capital markets here,” he said, arguing that a concentration of defence-financing expertise would be a long-term asset.

Workforce, office space and political tensions

A key feature of several bids is the offer to second employees from local institutions to help the bank scale up quickly. In Montreal, Stéphane Paquet, president and chief executive officer of Montréal International, said he has spoken with close to 10 local defence and finance companies about lending staff if the city is chosen.

The bids also promote central office locations. Vancouver has proposed two available leases in the 24‑storey TELUS Garden building, ranging from 87,700 to 160,000 square feet. Montreal’s submission lists eight potential downtown sites for the bank’s founding team and future expansion.

Recently, Ontario approved early work on the Bruce C Nuclear Project that is expected to create 18,900 jobs during construction and 6,700 once the facility is operational.

Here are the things provinces have said about this development: