SCHOOL SAVINGS
P3 approach to save $100M
The provincial government says a public-private partnership to construct 18 new schools will save taxpayers $100 million and deliver the schools earlier than if they were constructed the traditional way.
At a news conference on Monday, Gordon Wyant, the minister responsible for SaskBuilds, said the project is the “largest publicly owned and operated school project in Saskatchewan’s history,” and that the schools are needed to accommodate “unprecedented” population growth.
A value-for-money report by accounting firm KPMG found the P3 build of the joint-use schools will save about $100 million and allow them to open six to nine years earlier.
“When the schools open in September of 2017, it will be a breath of fresh air and will cause some relief on the pressure on classroom sizes and enrolment in those neighbourhoods,” Saskatoon Public Schools board chair Ray Morrison said.
Eight schools will be constructed at four sites in Stonebridge, Rosewood, Evergreen and Hampton Village.
Catholic school board chair Diane Boyko said the new schools will take overcrowding pressure off schools like St. Peters, which also borders Hampton Village.
KPMG found the project would have cost $735 million if the schools were delivered through a traditional approach, compared to $635 million through the P3 model.
Although the schools will be maintained by private partners, they will be publicly owned and operated by school boards.
The Opposition NDP takes issue with the $150 million in potential retained risk outlined by the province.
Deputy leader Trent Wotherspoon said the figure is “torqued up in a big way” to justify the P3 model. He noted other provinces, including Ontario and Nova Scotia, found that P3 projects cost them more than the public alternative.
“We just continue to call on this government to build our schools in a straightforward manner that’s affordable, that’s timely and to learn from other jurisdictions,” Wotherspoon said, noting the NDP has pointed out the need for new schools for many years.
He said the NDP would not take the “cookie-cutter approach” the Saskatchewan Party government has taken, noting the 18 schools will each be based on one of three different designs, depending on whether they’re located in Saskatoon, Regina, Martensville or Warman.
Education Minister Don Morgan said the ministry worked closely with school divisions to ensure the schools are tailored for specific communities.
Wyant said making construction and maintenance the responsibility of the P3 partners takes the province off the hook for risks that are associated with unplanned maintenance and construction costs.
“These schools will not only be built in a quicker period of time, they will be maintained by the proponent team over a 30-year period,” he said.
The province has selected a consortium of companies, known as a Joint-Use Mutual Partnership (JUMP), as its P3 partner. Wyant said the schools will be inspected on a regular basis to ensure that they are properly maintained.
“There’s a very detailed regime within the contract to make sure what’s being done is being done appropriately to ensure that at the end of the 30 years, these buildings will be in a like-new condition,” he said.
If the project falls behind schedule and the JUMP can’t meet the September 2017 deadline, it will face penalties depending on the nature of the failure or delay.