How are private-private partnerships (P3) in Canada faring? Both the benefits and drawbacks of P3 procurement are examined, as well as the potential for creating export opportunities for Canadian companies.
Canada as a Global Leader: Delivering Value through Public-Private Partnerships at Home and Abroad
Canada as a Global Leader: Delivering Value through Public-Private Partnerships at Home and Abroad
Canadian Economic Analysis
Sustainable Economy
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Private-private partnerships (P3) are one of the procurement alternatives for infrastructure delivery service. Canada as a Global Leader: Delivering Value through Public-Private Partnerships at Home and Abroad is an update to Signal49 Research’s 2010 report, Dispelling the Myths.
As well as a literature review, interviews were held with more than 30 P3 practitioners and observers from across Canada. The potential benefits identified are time savings, optimization of life-cycle spending, long-term guarantees on maintenance, innovation solutions, cost savings, and checks/balances in contracting. The potential drawbacks include private financing rates, the risk premium, transaction costs, lead times, and non-effective risk transfer.
The P3 market in Canada is known to be one of the most stable and developed in the world. However, the domestic market has matured to a level where significant growth is unlikely to occur, unless there is greater penetration of the municipal market or greater sophistication of P3 projects.
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