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Enhancing Public-Private Partnerships for Infrastructure Development

Learn how PPP Canada promotes efficient P3 projects, leverages federal funding, and helps municipalities achieve better value. Discover the impact of the P3 Canada Fund and the P3 Screening process. Find out about the renewed funding and its focus on economic growth priorities and private sector participation.

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Enhancing Public-Private Partnerships for Infrastructure Development

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  1. Achieving better value, timeliness and accountability through public-private partnerships Saskatchewan P3 Summit2014Regina, SK September 9, 2014 John McBride, CEO, PPP Canada

  2. PPP Canada: Leading the Government’s P3 Agenda • Crown Corporation reporting through the Minister of Finance • Operational since 2009 • Accomplished private sector Board • Focal point for developing P3 expertise

  3. Why PPP Canada? • Tasked with: • Being a source of expertise • Identifying federal P3 projects and advising on their execution • Leveraging federal funding of provincial and municipal infrastructure projects to promote effective P3s, including the dedicated P3 Canada Fund • P3s require new and specialized skills within the public sector • The federal government is a significant player in public infrastructure development

  4. A Source of Expertise

  5. Working with Provinces, Territories and Municipalities: New P3 Screen for Building Canada Fund • All projects with a capital cost over $100 million submitted for federal funding are subject to a P3 Screen • If initial P3 suitability assessment indicates P3 potential, a complete Procurement Options Analysis (POA) is required • This is consistent with existing practices in many provinces • The federal government recognizes established practices and methodologies employed by experienced provinces • PPP Canada administers the P3 Screen and provide advice to the Department of Infrastructure and Communities

  6. P3 Canada Fund

  7. Priority Infrastructure Categories • Water and Wastewater • Public Transit • National Highway System • Solid Waste Management • Local roads • Shortline rail • Short Sea Shipping • Regional and Local Airports

  8. Working with Provinces, Territories and Municipalities: Results from Original $1.2 Billion from the P3 Canada Fund • Over $6 billion in capital investment – 5:1 leverage • Have committed funding to over 20 projects • 16 jurisdictions employing P3 for the first time • 58% of the $1.2 billion committed to 15 municipal projects • Mix of small, medium and large projects • 7 water/wastewater projects • 7 public transit projects

  9. Working with Provinces, Territories and Municipalities Renewed $1.2 billion P3 Canada Fund • $1.2 billion over 5 year renewal of P3 Canada Fund announced in Budget 2013 • Funding of up to 25% of eligible capital costs remains unchanged • First investment round of renewed P3 Canada Fund was launched April 14th • Focus remains on: • Economic growth priorities: transportation, water/wastewater, solid waste disposal • Maximum privatesector participation: preferablyDesign-Build-Finance-Operate-Maintain, minimum Design-Build-Finance-Maintain • Building experience: new jurisdictions, new sectors, new approaches • Project Development Funding available for up to 50% of upfront P3 project development costs

  10. P3 Canada Fund – Municipal Investments

  11. The Canadian Context – Municipal P3s • 20 P3 projects entered into the procurement phase in 2013 • 7 of these projects were at the • municipal level up from 1 in • 2008 • All of the projects were in • municipalities employing the • P3 model for the first time

  12. The Canadian Context – Municipal P3s • Increasing interest and adoption by Canadian municipalities as demonstrated through the P3 Canada Fund: • 50% of applications under Round Five; and • 79% of applications under Round Six • PPP Canada development of tools and guides and workshops to assist municipalities in the screening and development of their P3 projects • Economic Action Plan 2014 “PPP Canada… will • undertake additional efforts to provide smaller • municipalities with information, guidance and • tools to support P3s and promote the bundling • of projects.

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