Construction Magazine April 2015 | Page 50

PPP CANADA

As the world moves further into the 21st century , much the infrastructure of the last 100 years will need replacement or upgrades , and in Canada taxpayers will know for certain that these projects are being completed with value in mind .

Founded in 2008 as a whollyowned corporation of the Canadian federal government , PPP Canada exists with one mission in mind : to assess the P3 viability of largescale infrastructural projects throughout Canada and to deliver the maximum value on each project to the taxpayers . John McBride , chief executive officer and the first employee of PPP Canada , has the task of steering the company along as it demonstrates the benefits of the P3 model .
“ We work with all levels of government in Canada to make sure that P3s are used in a wise and effective way ,” McBride said . “ When we work with provinces and municipalities , we have a fund that we can commit to good P3 projects to encourage their use at the provincial and municipal levels . And we work with the federal government to screen , structure and execute P3 projects .”
How a P3 Works Short for “ public-private partnership ,” the P3 model transfers a significant amount of risk away from the public to the private sector by structuring payments to a developer out over the useful lifespan of a project , optimizing efficiency , reducing costs and attracting the best talent from around the world .
McBride describes the P3 model as an excellent solution for infrastructural projects that meet a few certain criteria . First , they need to carry a price tag for taxpayers of more than $ 50 million — though probably more than $ 100 million — to make the P3 model financially viable while attracting companies to the bidding process . Second , the organization attracting bids for a project needs to be able to specify performance standards over the lifespan of the development , only paying the remaining amount owed after the long-term obligations are
50 April 2015