Public-private partnership perfection
Pedestrian tunnel delivered on budget is the latest proof that the system works
Toronto is a thriving metropolis and leading tourist destination in Canada. To keep pace with the growing needs of Torontonians and visitors alike, important investments in public infrastructure are being made. This includes infrastructure that ensures reliable, convenient and affordable access to and from the city’s bustling airports, something that is more important than ever to ensure a city that is connected.
Recently, the Union-Pearson (UP) Express – a successful P3 project that built a rail link between downtown and Toronto Pearson International Airport – opened to the public. Now, PortsToronto has dramatically improved access to and from Billy Bishop Toronto City Airport through a newly opened tunnel, providing yet another excellent example of what happens when governments harness private-sector innovation and expertise to build cutting-edge public infrastructure.
“The new pedestrian tunnel to Billy Bishop Airport is yet another Canadian success story of a P3 project delivered on budget,” said Mark Romoff, President and CEO of The Canadian Council for Public-Private Partnerships (CCPPP). “The use of an innovative public-private partnership in the construction of the tunnel has allowed for the creation of high-quality, much-needed infrastructure for Torontonians, and visitors to the city, with no cost to taxpayers.”
The project was procured by PortsToronto in 2012, modelled as a public-private partnership, and was structured as a Design-Build-Finance-Maintain (DBFM) project with private-sector partners Forum Equity Partners as lead developer, PCL Constructors as design builder, Johnson Controls as facility manager, and Arup as the lead designer.
“The completion of the Billy Bishop Toronto City Airport pedestrian tunnel is a sterling example of what can be accomplished when the public and private sector work together,” said Richard Abboud, Founder and CEO of Forum Equity Partners. “The framework utilized by PortsToronto provided significant advantages through the design, build, finance and maintenance phases of the tunnel project. It enabled us to successfully leverage innovations offered by the private sector and to reduce the upfront funding requirements for the project.”
The economic and employment benefits of P3s are irrefutable. There are currently 227 P3 projects across Canada, with those in operation or under construction valued at $72.7 billion. A 2013 economic impact assessment of P3s in Canada concluded that, over a 10-year period, P3s created more than 290,000 direct full-time equivalent jobs, contributed $25.1 billion to GDP, and generated $9.9 billion in cost savings and $7.5 billion in tax revenue for the federal and provincial governments.
P3s are not a panacea for all infrastructure needs, but they are an attractive tool in the procurement toolbox. When governments choose wisely, they can be enormously successful – as the Billy Bishop Airport Pedestrian Tunnel proves.