One firm shows interest in building schools
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.