C O M P A N Y O V E R V I E W
PPP Canada
P3 Knowledge, Leadership and Expertise Written by: Michelle Coates
Produced by: Mike Magno
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PPP CANADA
Kokish River Hydroelectric Project(Port McNeill BC
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he need for infrastructure renewal is real and governments across Canada have recognized that investing in public infrastructure is an effective way of boosting the economy while delivering tangible results Canadian can see and use every day. Public-private partnerships (P3s) have proven their ability to deliver value. Governments have seen this model work for projects across the country, with early adopters like Alberta, British Columbia and Ontario leading the way. When done well and for the right reasons. P3s can be a useful 4
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procurement tool for governments. P3s engage the expertise of the private sector and the discipline of capital markets to deliver ontime, on-budget, whole life-cycle solutions to delivering the public infrastructure Canadians need. Recognizing the growing attraction to P3s, in 2008, the Government of Canada saw an opportunity to leverage its role to enable the consideration of P3s through the creation of PPP Canada, a federal Crown corporation. Effecting change PPP Canada strives to deliver value
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SRO Dowtown Eastside Vancouver_BC Housing
to Canadians through the effective use of P3s. We are doing this by working with all levels of government to share P3 knowledge and build best practices to change the way people think about procuring public infrastructure. Whether the goal is to procure a wastewater treatment plant for a small municipality or an international airport for a growing territory, value for Canadians is our over-riding focus. That is why we recommend a P3 approach based on a detailed and systematic assessment of value for money. The federal government has significant direct responsibility
for the provision of national public infrastructure assets and has mandated that all large federal projects with capital costs of more than $100 million be assessed for P3 suitability. PPP Canada is here to provide our federal clients with reliable advice and expertise to help identify P3 viability, perform a thorough procurement options analysis and advise on the procurement of the project. Our most visible federal advisory engagement to date is the New Bridge for the St. Lawrence project. Our team has been working with Infrastructure Canada to complete a w w w. p 3 c a n a d a . c a
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PPP CANADA
Evan-Thomas Water and Wastewater Treatment Facility project Kananaskis Country, Alberta
study to support their procurement process. PPP Canada is similarly involved with Transport Canada and Windsor-Detroit Bridge Authority in the development of the Detroit River International Crossing. We also work with other levels of government to advise and evaluate P3 potential for projects submitted through the P3 Canada Fund. With the first 5-year, $1.2B tranche of the P3 Canada Fund now complete, we are in a position to look back on our successes and the impact the Fund has had on the Canadian P3 market to date. Between 2008 and 2013, the market has expanded significantly. Since the launch of the 6
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P3 Canada Fund, the number of P3s entering procurement has more than doubled. Between 2009 and 2014, the $1.2B Fund provided up to 25% support to 24 projects, leveraging more than $6B in P3 infrastructure across Canada. The estimated incremental value of these projects compared to traditional procurement exceeds $800 million. The Fund, combined with our considerable outreach and education activities has had a huge impact in attracting new players to the market – most significantly municipalities. Since launching the P3 Canada Fund, we have confirmed investments
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to 14 municipalities, which make up 68% of the Fund’s overall portfolio. Most notably, 12 of these municipalities were first-time entrants into the P3 market. The entry of municipalities into the P3 market has created demand for a wider range of assets, including water and wastewater treatment facilities, public transit projects, and solid waste management assets.
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Federal Crown corporation HEADQUARTERS
The way forward The ongoing success of the Canadian market has been recognized internationally. With strong capital markets, legal frameworks, private sector experience and capacity we expect the Canadian P3 market to remain resilient. In the 2013 Economic Action Plan, the federal government renewed the P3 Canada Fund with $1.2B over the next 5 years. It went further announcing that all applications to the New Building Canada Fund will be subject to a P3 screen if eligible costs are estimated at $100 million or more. These announcements underscore the federal government’s commitment to ensuring maximum value through the effective use of P3s and will no doubt have an impact on the number of projects brought to the market moving forward. PPP Canada remains in a unique position to help formalize best practices and push for greater transparency with respect to P3 projects and the Value for Money they generate so we can continue to lead by example.
Ottawa, Ontario, Canada FOUNDED
2008
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PPP CANADA 100 Queen Street, Suite 630, Ottawa, Ontario K1P 1J9 www.p3canada.ca