P3s a viable solution for infrastructure woes: study

OTTAWA — Public-private partnerships (PPPs) can be a cost-effective tool for building and managing transportation infrastructure, but governments must be selective in deciding which projects are best developed, the Conference Board of Canada concludes in a new study that examines both successful and failed transportation infrastructure projects.

"In some quarters, PPPs are viewed as the only way to build and maintain transportation infrastructure, while others are opposed to any and all forms of PPPs," said Mario Iacobacci, the Conference Board’s Director of Research and Director, Centre for Infrastructure. "Neither view is accurate. The merits of PPPs need to be looked at on a case-by-case basis."

PPPs are long-term contractual arrangements whereby a public sector entity procures the design, construction, and ongoing operation and/or maintenance of an asset, usually from a consortium of private sector firms which finances the project.

Ottawa is in talks to set up a number of 3P infrastructure projects, including a new international bridge crossing at the Windsor-Detroit border gateway.

The study, titled "Steering a Tricky Course: Effective Public-Private Partnerships for the Provision of Transportation Infrastructure and Services," closely examined the Confederation Bridge fixed link as an example of a successful P3.

As well, the Montreal metro extension to Laval was studied as an example of project that was not a P3, but one that could have benefited from the due diligence that private financing usually provides.