Broadening and Deepening the Canadian P3 Market - S6 - John McBRIDE - Canada.pdf · Broadening and...
Transcript of Broadening and Deepening the Canadian P3 Market - S6 - John McBRIDE - Canada.pdf · Broadening and...
Broadening and Deepening
the Canadian P3 Market
A Case Study of PPP Canada and the P3 Canada Fund
OECD 6th ANNUAL MEETING OF SENIOR PPP OFFICIALS
April 15 - 16, 2013
Paris, France
John McBride, CEO
PPP Canada
Achieving better value, timeliness and accountability
through public-private partnerships
• Infrastructure responsibilities divided among federal, provincial, territorial and municipal governments
• P3 Market has been historically led by key provinces, primarily (80%) in health, transport and justice sectors
• More than 100 P3s worth $55 billion over last 10 years, 35 projects worth $27 billion in last 3 years
• Canadian approach built on and adapted UK and Australian models
Canadian Context
• Focus on Value for Money
• Dedicated P3 agencies with predictable timely procurement processes
• Significant competition
• Deep capital markets, including established project bond market
Success founded on:
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PPP Canada – Canada’s Federal P3 Agency
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Crown Corporation reporting through Minister of Finance with private sector Board of Directors
Operational in 2009 with mandate to increase the us of P3s at all levels of government by:
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
P3 Canada Fund Deepening and Broadening use of P3s by Provinces, Municipalities & First Nations
• To stimulate the adoption of P3 procurement by Provinces, Territories, Municipalities and First Nations
• Support useful public infrastructure in 15 categories
• Projects that build the P3 market
$1.2 Billion Fund
• P3 viability
• Readiness
• P3 models that maximize private sector involvement and risk transfer
• Applicant Capacity
Merit Based Program
• Maximum 25% of eligible costs
• Range of potential instruments including contributions, repayable contributions, loans and loan guarantees
• Budget 2013 renewed Fund with additional $1.25 Billion
Available Support
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Annual Investment Rounds
Multi-stage Process: --Outreach
--Application (Application & Business Case Development Guides available at www.p3canada.ca)
--Screening
--Business Case Development and Project Development Funding
--Investment Decision
--Conditional Financial Agreement
--Financial Agreement
--Substantial Completion/Payments
PPP Canada is not the procurer, but must ensure high quality P3 projects are developed and executed
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P3 Canada Fund – How Does it Work?
15 projects valued at $3.4 Billion with PPP Canada contribution of $717.5 million
Growing interest and quality of projects as knowledge and experience develops
Fund is broadening P3 market to new jurisdictions – municipalities, new provinces
Fund deepening the P3 market in new sectors and models
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Experience To Date
Iqaluit International Airport Improvement
Project , Nunavut
Refurbishment of existing airport with new terminal building, runway
and apron upgrades, emergency services 7
City of Edmonton Light Rail Transit System
$1.6 billion DBFOM extension of municipal LRT system
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Focus on larger projects
No substitute for practical experience
Constant effort to address P3 misconceptions among supporters and critics
Need to increase attention to upfront work – pays huge dividends
Main constraints to more and better P3s are public sector incentives and capacity
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Learnings
Federal Government Walking the Talk of P3s
First two projects closed
All projects in excess of $100 million must be assessed for P3 suitability
Pipeline of projects in development
• New bridge in Montreal
• New bridge at Detroit, Michigan/Windsor, Ontario border crossing
Two mega bridge projects under development
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P3 Canada Fund - Projects Announced to Date
• Edmonton Light Rail Transit System (Edmonton, Alberta)
• Saskatoon Civic Operations Project (Saskatoon, SK)
• North Saskatchewan Bridge (Edmonton, Alberta)
• Iqaluit International Airport Improvement Project (Iqaluit, Nunavut)
• Organics Biofuels Facility Project (Surrey, BC)
• GO Transit East Rail Maintenance Facility (Whitby, Ontario)
• Lincoln Station Project (Coquitlam, BC)
• Biosolids Energy Centre (Greater Victoria, BC)
• Downtown Eastside Housing Renewal Project (Vancouver, BC)
• Biosolids Management Facility (Greater Sudbury, ON)
• Barrie Transit Facility Project (Barrie,ON)
• Evan Thomas Water and Wastewater Plant ( Kananaskis Country, Alberta)
• Lac La Biche Biological Nutrient Removal (BNR) Wastewater Treatment Facility (Lac La
Biche County, Alberta)
• Lachine Train Maintenance Centre (Montreal, QC)
• Chief Peguis Trail Extension (Winnipeg, MB 11
CONTACT US
100 Queen Street, Suite 630 Ottawa, Ontario K1P 1J9 Canada Telephone: (613) 947-9480 Fax: (613) 947-2289 Toll Free : (877) 947-9480 Email: [email protected]