REGINA – A new report prepared by Ernst & Young for the provincial government reveals that using a public-private partnership to build the Regina Bypass has saved $380 million.
Released Tuesday morning by the provincial government, the value for money report shows that the public-private partnership (P3) brought the total cost of the bypass project to $1.8 billion.
In comparison, a traditional build would have cost $2.2 billion.
“This report confirms what our government has said many times – that a P3 was the right decision for this project,” said Gordon Wyant, the minister responsible for SaskBuilds.
Much of the cost difference comes down to risk-transfer, which is an estimate of how much money it would cost taxpayers if there’s bad weather or design mistakes that result in delays.
In this public-private partnership, the bulk of that is taken on by the contractors.
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Wyant says traditional procurement methods may have taken six years longer.
“Getting it finished earlier is a significant feature, because there’s some safety challenges on the existing roadway,” Wyant said. “I think that’s the most important feature of this project.”
The report looks at the cost of construction and design, as well as 30 years of operation and maintenance on the roadways. The majority of savings was under retained risk.
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READ MORE: Construction ramps up on Regina bypass
The Opposition NDP criticized the value for money audit, noting that it doesn’t break down all risks with a line-by-line total.
“When they lay out their points as to why this is supposedly a better way forward, it’s nothing more than a sell-job torqued to support their preferred approach,” said deputy NDP leader Trent Wotherspoon.
“This is P3s on every turn, it seems, as opposed to true common sense evaluation of the best way forward.”
“The only one getting a good deal on this project is the corporation from Europe that will rake in billions of Saskatchewan dollars,” NDP deputy leader Trent Wotherspoon said.
“I’d remind the Sask. Party that the money they’re playing with belongs to Saskatchewan families.”
The first phase of the bypass is expected to open in fall 2017, with the entire highway opening by fall 2019.
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