Most public-private partnership (P3) infrastructure projects are delivering good value to taxpayers, but more work could be done to encourage municipal governments to use the P3 model, according to a Conference Board of Canada report released August 21.
The Conference Board found that 83% of P3 projects in Canada have been completed early or on time. Provincial governments are the most common users of the P3 model. B.C., Alberta, Ontario and Quebec have used P3s the most.
Municipal governments tend to not use the P3 model for infrastructure projects because of a lack of funding, more political risk, smaller project sizes and less familiarity with the model.
The Conference Board recommends that municipalities could be encouraged to make better use of P3s if:
- projects such as wastewater infrastructure be favoured for funding from senior levels of government if they include metered water pricing, which has been shown to reduce consumption;
- evaluations of P3 projects be conducted after completion, in addition to before and during the project;
- public education is provided to clarify that value-for-money evaluations compare all costs (procurement, financing, capital, risk, operations and maintenance) over the total life of the project; and
- funding incentives be amended to encourage projects that include an operating and maintenance phase, in addition to design and construction.
