Calgary Herald

One firm shows interest in building schools

- MICHAEL WRIGHT MWRIGHT@CALGARYHER­ALD.COM

The Alberta government is pressing ahead with its plan to build 19 new schools in the province through a public-private partnershi­p, despite only attracting one private contender for the project.

The Build to Learn consortium, with team leads Gracorp Capital Advisors Ltd. and Bird Capital Ltd. Partnershi­p, has been asked by the province to submit a request for proposal (RFP), detailing how it plans to design, build and finance the 19 schools at a lower cost than a traditiona­l model.

It is an unpreceden­ted step — the province has never moved forward on an RFP with just one proponent, much less entered into a publicpriv­ate partnershi­p (P3).

“After looking at our delivery options, we found this is still the best way to provide value for Alberta taxpayers and ensure the 19 new schools are completed on time,” Alberta Infrastruc­ture Minister Wayne Drysdale said.

The project is part of the province’s $1.4-billion plan to build 50 new schools and modernize 70 more over the next three years.

The government has previously warned school communitie­s of possible delays, as a buoyant constructi­on industry made low-margin public projects less appealing.

A spokeswoma­n for Drysdale said the RFP process would be “a little bit more rigorous” because of the absence of competitio­n.

“If it turns out the bid comes in at more than what (an) independen­t auditor would think this project would cost, we don’t have to award the contract.”

That independen­t auditor, yet to be appointed, would run its own shadow bid against the consortium’s to ease the province’s concerns about increased cost risks on what was essentiall­y a sole-source contract.

The project could yet revert to a more traditiona­l design-build form if the P3 tender didn’t stack up.

“It would really depend on what exactly was wrong with the bid,” the spokeswoma­n said.

“Alberta Infrastruc­ture could work with them to bring it to a place where we feel it should be or we could decide not to go that way at all and start the process again with a more usual delivery method.

“It could cause delays but I think that’s premature at this point.”

Critics have blasted the P3 model to build the much-needed schools, dismissing the government’s reasoning it was cheaper and faster than convention­al tendering and questionin­g its suitabilit­y in an overheated constructi­on market.

Liberal MLA Kent Hehr said the province “sat on their hands” on the schools project and opted for a P3 to hide its true cost.

“There’s no doubt they’re desperatel­y flounderin­g around. P3s are a great way for government­s to hide debt. That’s why they’re going about this process instead of using the traditiona­l build model.”

Derek Fildebrand­t of the Canadian Taxpayers Federation said it was ironic the province was citing speed and value for money as the reasons the P3 model was best for the growing number of Alberta children who needed the new schools.

“These children are going to be paying for these schools long after they’ve graduated and are in the workforce,” he said.

“We should not be putting this on the credit card. (The province) has the revenue capacity to build schools ... they just don’t have the willpower to prioritize building (them).”

Eight of the 19 schools in the project are earmarked for Calgary, with two more to go to nearby communitie­s.

 ?? Colleen De Neve/Calgary Herald/Files ?? The province is moving forward with a plan to build 19 new schools through a public-private partnershi­p.
Colleen De Neve/Calgary Herald/Files The province is moving forward with a plan to build 19 new schools through a public-private partnershi­p.

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