Canadian construction industry weighs pros and cons of P3s

SASKATOON – Canadian construction industry players gathered in Saskatoon on Wednesday for a special panel on public private partnerships (P3s).

The event was put on by the Saskatchewan Construction Association (SCA) and featured five panelists who led the discussions.

“No matter what type of procurement model the government uses, they’re going to be expecting our construction companies to build the infrastructure, so we want to understand what P3s would mean,” said SCA president Mark Cooper.

Representatives from Ontario, Manitoba and British Columbia were among those in attendance. The P3 funding model has been successfully implemented in those provinces to finance major infrastructure projects, including schools, hospitals, roads and bridges.

“I think it allows, potentially, for the government to accomplish more projects because it involves private financing, which, in theory, can free up more government dollars,” said Cooper.

The whole idea behind the funding model is that it serves as a long-term, performance-based approach.

“From a political standpoint, it’s certainty of cost. The project – you do not accept it unless it is completed to your satisfaction. So there’s no risk of getting a project that doesn’t meet your needs because you simply don’t pay for it,” said John Schubert, former chair of the Canadian Construction Association.

The private partner is bound to deliver on long-term maintenance as well.

Last month, Regina residents took part in a referendum, voting almost 57 per cent in favour of using the P3 model to help finance a $224 million waste water treatment plant.

Contrary to Premier Brad Wall’s most recent comments about building schools in bulk to deal with rising enrollment, possibly through the P3 model, many at the panel say this isn’t a one-size fits all kind of solution to getting the job done.

“If you’re trying to take 10 schools and bundle them in one package – with different needs throughout the province – the damage it’s going to do to the local industry is quite large,” said Dean Drevniok, president of Ontario-based Frecon Construction Limited.

While proponents view P3s as a viable option, governments are being urged to approach each project on a case by case basis.