Innovative solutions across 4 crucial sectors
Public-private partnerships have been able to penetrate 4 different and unique sectors, resulting in various high profile infrastructure projects vital to the Canadian economy.
Hospitals and healthcare
Hospitals currently represent the largest area of P3 activity across Canada, with 75 projects in procurement, under construction or operational. This sector totals $20.4 billion worth of contracts to date. There has been a steady pipeline of projects since Ontario and British Columbia began procuring new P3 health care centres and acute care hospitals in 2002. Since then, Quebec has procured two large hospital projects as P3s (CHUM and MUHC in Montreal) as well as several long term care centres. Saskatchewan and Alberta are actively investigating the potential for P3s to replace existing aging hospitals. These healthcare projects involve extensive consultations with stakeholders to ensure the design and plans meet local needs and can adapt to advancements in healthcare for years to come.
Schools
Canada’s first foray into P3 schools began in Nova Scotia and New Brunswick in 1997. While other countries such as the UK and Australia used the P3 model in this sector beginning in the early 2000’s, Canada experienced a decade of inactivity until Alberta started its ASAP (Alberta Schools Alternative Procurement) program in 2007.There have since been 41 elementary and secondary schools designed, built, financed and maintained as P3s and Alberta recently announced 50 more new schools, many of which are expected to continue the success of the provinces P3 schools program. Alberta continually bundles several projects under one contract to improve effi- ciencies and transfer sufficient risk to the private sector partners.
Transportation
Canada’s first major P3 transportation project was the iconic Confederation Bridge that links New Brunswick and PEI. Completed in 1997, it involves a 35-year agreement with Strait Crossing Development Inc.,which provides on-going maintenance and toll collection. There are now 42 roads, bridges and transit projects utilizing the P3 approach evident across the country, from the Trans Canada Highway in New Brunswick to the Disraeli Bridges in Winnipeg to the Sea-to-Sky Highwayin British Columbia. Public transit is a recent area of P3 growth, with the Vancouver region, Edmonton, Waterloo, Toronto and Ottawa all pursuing significant initiatives that will bring the private sector into the financing, maintenance and in some cases, operation of newlight rail lines.
Water and wastewater
Water and wastewater also represents a recent P3 growth area. With new federal drinking water guidelines, aging infrastructure and limited fiscal tools, municipalities are exploring the potential for public-private partnerships to fill the gap. There are many examples of smaller projects (e.g. Britannia Mine, BC; Canmore, Alberta; Goderich, Ontario; Moncton, New Brunswick) across the country that have turned to the private sector for operational expertise and efficiencies. Given the estimated $88 billion investment required to replace water/wastewater infrastructure in Canada, many other communities are considering the potential for on-time, on-budget delivery available from P3s.