REGINA – In only a matter of minutes, an F3 tornado ravaged the town of Goderich, Ontario in August 2011.
“The immediate impact was one of disbelief. It was like a war zone…It destroyed about 40 to 45 businesses. It destroyed 40 or 50 houses,” said Larry McCabe, Goderich Chief Administrative Officer.
The town of 8,000 people is an important seaport and had a history of entering into P3 projects since the nineties. After the devastation, they turned to the private sector once again, a decision which allowed them to not only rebuild, but also expand their harbour in just three years.
“It’s been a win-win for industry and it’s been a win-win for Goderich,” said McCabe.
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To help address an infrastructure deficit in Canada amounting to billions of dollars, the federal government is insisting municipalities pursue public–private partnerships, but not all of these projects have saved governments money. A summit held in Regina Tuesday, sponsored by the Saskatchewan Chamber of Commerce, the Saskatchewan Construction Association and the Saskatchewan Heavy Construction Association, discussed how P3 projects can be used in the future in Saskatchewan.
McCabe was part of a panel which addressed smaller municipal projects.
He said P3 projects often help to bridge the infrastructure funding gap, or as is the case in Saskatoon, actually help to build bridges.
“It’s one thing building new infrastructure, you also have to maintain and operate it. So we have an interest in including those costs as part of the project,” explained Murray Totland, Saskatoon City manager.
However, not all P3s are created equally. Multi-million dollar projects, like the waste water treatment plant in Regina and nine new schools in the province are on auditors’ radars.
“What we want to do is see if the government in question has established whether they’re going to get value for money,” said Mike Ferguson, the Auditor General of Canada.
He explained evaluating whether a P3 actually does save money can be difficult, and savings aren’t guaranteed.
“When you’re dealing with something that’s involving municipal, provincial and federal there’s also the additional question of… is there value for the taxpayer in general?”
Presenters at the summit provided two pieces of practical advice. Since P3s are complex contracts, securing good lawyers is key. As well, it’s crucial to be open and transparent with the media and the public.
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