P3s

In early December, 2003, information about the new "Public-Private Partnership Office" was released on the Industry Canada web site Strategis. If you are interested in the subject of "P3s", that site is the place to begin your searching and we provide the link below. Along with a good discussion of the definition of P3s you will find a glossary and "Landmark Canadian Examples" as well as an FAQ section.
We have supplemented the Strategis site by providing a bibliography that offers a selection of P3-related articles from across the country and from sectors ranging from transportation to health care, back to 1996. For additional advice about databases and strategies for searching for "P3s", consult with a library staff member. For examples of two recent studies done at the Canadian Centre for Policy Alternatives see: Funding Hospital Infrastructure: Why P3s Don't Work, and What Will, by Lewis Auerbach, Arthur Donner, Douglas D. Peters, Monica Townson, and Armine Yalnizyan and For Cash and Future Considerations: Ontario Universities and Public-Private Partnerships, by Heather-jane Robertson, David McGrane and Erika Shaker. For related resources created by the Business Library staff see: The Private Sector and Public Highways; Private Prisons and Private Universities.

Related Books in Business Library

HD3885.L48 2011 Public-Private Partnerships: Case Studies on Infrastructure Development

HD3871.P83 2010 Public Private Partnerships

HD3871.I58 2010 International Handbook on Public-Private Partnerships

LB2826.6.C2L692 2007 Schools: The Case for a Canadian PPP Aplication (Canadian Council for Public-Private Partnerships)

HD3861.C2.C363 2006 Canadian PPP Project Directory: Selected Public-Private Partnerships Across Canada (Canadian Council for Public-Private Partnerships)

RA983.A1B356 2003 Hospitals: The Canadian Case for Hospital PPP Projects (Canadian Council for Public-Private Partnerships)

Announced on Strategis Dec. 5, 2003
1. "NEW - The Public-Private Partnership (P3) Office's mandate is to increase awareness of public-private partnerships by providing a centre of knowledge and expertise on P3 issues. The P3 Office is an initiative of the Service Industries Branch of Industry Canada, whose mandate is to foster competitive, knowledge-based Canadian service industries. Canadian services
firms in sectors such as engineering, architecture, construction, legal, and management consulting can provide cost-effective, innovative solutions for public infrastructure and services by way of public private partnerships. Done the right way, P3s offer promising new business opportunities for Canadian services firms

http://strategis.ic.gc.ca/ppp

Selected Bibliography
(This is not an exhaustive list and is meant only to provide examples.)

"Privatization Battle Over B.C. Rail Heats Up: Ex-Premier Opposed," John Greenwood, Financial Post, Nov.10, 2003, p.3.
"Former premier Bill Vander Zalm rarely makes it into the public spotlight these days but he recently garnered headlines when he took the stage alongside representatives of the B.C. Federation of Labour and the Canadian Union of Public Employees to protest the privatization of BC Rail, British Columbia's debt- burdened freight carrier. Rhetoric aside, over the years Mr. Vander Zalm has proved himself a political moth of considerable savvy, and the fact he has gravitated to the cause of BC Rail is an indication of how contentious the issue has become."

"Canada's Great Western Railroad Rivalry," William C Vantuono. Railway Age, Jun. 2003. Vol. 204, Iss. 6, p. 4
"Canada's two largest railways, Canadian National and Canadian Pacific, are vying for the right to enter into a public-private partnership to control and operate the country's third-largest railway, BC Rail. Both planned to file a formal expression of interest in BC Rail with the Province by the end of last month. Not surprisingly, both say they are the better operating partner."

"On the Edge," Richard Bray. Summit, Jun 2003. Vol. 6, Iss. 3, p. 16
"Many governments in Canada still are not using public-private partnerships (P3) to deliver facilities and services. Within government there is no culture that suggests you are a better civil servant and doing your job better if you have a perspective of innovation. The impact is that even those constantly striving to make things better might consider P3s a little bit out on the edge. But innovation is exactly what is needed to renew Canada's decaying infrastructure and deliver a widening range of services to a changing population. First, the federal and provincial governments need to create a legal environment that allows and encourages P3s to proceed. P3s can be an innovative and effective way to deliver public services, but many potential projects are waiting for the political will."

"More for the Money," Richard Bray. Summit, Mar 2003. Vol. 6, Iss. 2, p. 6
"Like many cities in Canada, Ottawa decided to meet the dual challenge of dwindling budgets and escalating public expectalions by using public-private partnerships (P3). Unlike other cities, however, it decided to establish a Strategic Delivery Unit (SDU) for P3s within the bureaucracy to cut duplication and ensure best practices were used. By the middle of October, Ottawa City Council was looking at priority P3 projects recommended for swift implementation. Rejean Chartrand, Ottawa's director of business development, said SDU's purpose is to develop P3 expertise. Ottawa City Council was divided on the creation of a dedicated P3 office. With that slender political endorsement, the SDU is clearly under pressure to deliver solid, valuable projects and Rejean Chartrand knows it."

"B.C. Plans First Large-Scale P3 Health-Care Facility," Lynn Haley. Medical Post Toronto, Jan 21, 2003. Vol. 39, Iss. 3,
p.31
"We made a New Era commitment to focus health resources on meeting the needs of patients, said Gordon Campbell. As part of fulfilling that commitment, we need to develop innovative ways of building and managing facilities to make the most of every healthcare dollar we spend. P3s are a way that we can provide improved publicly funded and accessible services, while efficiently managing resources so those dollars can meet a wider range of patient needs."

"Calgary Health Region ad for Private Partnerships Draws Fire," Barbara Kermode-Scott. Medical Post Toronto Jan 21, 2003. Vol. 39, Iss. 3, p. 8
"This will be publicly funded money, under the Canada Health Act, said Calgary Health Region media relations advisor Doug Fraser. What we're trying to do is identify potential partners."

"Transcanada Forms Partnership for 55MW Toronto Gas Project," Global Power Report New York, Dec 26, 2002. p. 9
"The Portlands project is one of several investments that Trans-Canada is making in the electric sector in Ontario. The company announced on Dec. 23 that it plans to buy a 31.6% ownership interest in Bruce Power, the nuclear-plant lessor (see story, page 11), and it already owns about 36% of TransCanada Power L.P., which holds interests in five independent power plants in Ontario totaling 198 MW, as well as a 65-MW plant in British Columbia and a 64-MW plant in New York."

"Public-Private Partnerships in BC Health Care," Lisa Marsh. Summit, Dec 2002. Vol. 5, Iss. 4, p. 25
"The British Columbia Health Information Management Professionals Society held its fall education session October 17, 2002 at the University of BC Golf Club. Two of the key messages were that Public-Private Partnerships (P3) are really about allocating risk and that there needs to be broader public awareness of P3s and their economic benefits."

"A Dramatic Shift," Craig Fitzsimmons. Beyond Numbers, Nov 2002. Iss. 418, p. 8
"Part of the opposition to P3s is rooted in ideology-public sector unions have called P3s "privatization by stealth." However, unlike privatization, the government remains involved in a P3 throughout the life of the project. Nevertheless, as the BC government moves forward with P3s, it will face well-- organized anti-P3 campaigns."

"Making the Case for P3s in BC," Michelle McRae. Beyond Numbers, Nov 2002. Iss. 418, p. 12
"P3s in the services sector are a new concept, and the government has to proceed cautiously," says Bob Skene. It has to use due diligence to make sure a partner is fully viable-this means having both the necessary knowledge and financial strength. JobWave only happened after WCG had proven itself by successfully running a series of contracts with fees for services. Only then did WCG move on to a performance-based contract. By then, both WCG and the government knew JobWave would be viable."

"Strength in Numbers: Public-Private Partnerships Could Prove that there's more than one way to build and Operate a Hospital Facility," Lindsay, David. Canadian Healthcare Manager, Sep 2002. Vol. 9, Iss. 5, p. 25
"P3s are relatively new to Ontario--an early P3 built the toll Highway 407 north of Toronto--but are part of mainstream infrastructure plans around the globe. They're behind secondary school expansion and light rail plans in the United Kingdom and community hospital projects in Australia. Whatever the project, P3s are bound by combined strength--the partners use the capacities of private enterprise to create efficiencies that allow government to free public funds for more core economic and social programs. In Brampton, a population boom prompted the new hospital project, and similar demographic trends across the province have prompted the government to look at different approaches to financing new hospitals. The P3s offer a means to transfer risks, share rewards and meet the need for new infrastructure at lower costs. They also set out a model for designing, building, financing, owning, operating, property managing and maintaining a new hospital: Private partners will construct the buildings for the William Osler facility in Brampton and the Royal Ottawa Hospital in the nation's capital, and will also handle some non-clinical support services. Depending upon the partner, the model may extend to maintenance of facilities and other support services such as food preparation and catering, and cleaning services."

"PPP World Series?," Tom Nelthorpe. Project Finance London Sep 2002. Iss. 233, p. 32
"The two most frequently cited examples of progress in the Canadian PPP market are the Nav Canada air traffic control deal and the Highway 407 acquisition and subsequent financing. The two could easily be represented as the main poles of around which the debate will hinge. Nav Canada used a trust structure without equity to provide what was viewed as an essential public service. Highway 407, on the other hand, was the acquisition of a commuter toll road in Ontario with state-of-the-art collection technology and a healthy user base. But both deals worked outside of any formal PPP programme. Progress on further projects, however, has been far slower, whilst the provinces decide how far, and in what shape, they want to proceed with their own programmes."

"The Pension Fund Approach to PPP," Gillian Drury. Strategic Direct Investor, Sep/Oct 2002. p. 11
"Gridlock in Toronto has galvanized the Ontario government into looking at new ways to finance the province's infrastructure and late last year the Ontario Superbuild Corporation was established, with a mandate to implement the largest investment program in the province's history. Through Superbuild, the Ontario government has committed to a 10-year, $9 billion plan to "ensure the province has a transit system that will help strengthen the economy and protect the environment. It is hoped that Superbuild will become the catalyst for public private partnerships (PPP) growth in Canada. Dale Richmond, CEO of Ontario Municiple Employees Retirement System (OMERS), is confident that Ontario's bold vision will be met by the private sector and embraced at both federal and municipal level. OMERS investment in PPP projects at the moment stands at between $500 million and $1 billion."

"BC + X = P3," Sid Tafler. Summit, Sep 2002. Vol. 5, Iss. 3, p. 16
"Government revenues have been falling in British Columbia while debt has been rising, but the demand for public projects is growing rapidly in every corner of the province. The government has turned, with zealous enthusiasm, to the private sector, ramping up a new capital projects strategy and inviting private companies to finance, build and operate new projects. The BC government, led by Premier Gordon Campbell, is embracing public-private partnerships (P3s) as a method of making the math work for BC. The charge is being led by Finance Minister Gary Collins, whose top-level bureaucrats have been busy building a new agency to facilitate an ambitious dossier of P3s and coordinate the $2 billion in public capital projects built annually across the province. A chorus of critics, chiefly among BC's powerful union sector, claims that P3s are ideologically driven and have failed to deliver as promised in the United Kingdom and other countries."

"P3: Salvation or Sellout?," Albert Warson. Building Toronto, Aug/Sep 2002. Vol. 52, Iss. 4, p. 4
"Thirteen other aging, overcrowded and generally inefficient courthouses in 12 Ontario communities are prime candidates for P3 treatment. The notion is catching on. In late June, the provincial government department Alberta Infrastructure advertised nationally for developers to finance, build and operate new Law Courts in Calgary. Moncton, N.B. is preparing for a P3 courthouse as well."

"Seeking Sustainability: Are Public-Private Partnerships the Answer to Funding e-health Initiatives?," Marafioti, Sam. Canadian Healthcare Manager, Aug 2002. Vol. 9, Iss. 4, p. 20
"Sam Marafioti (Sam.Marafioti@swchsc.on.ca) is vice-president, eHealth and chief technology officer at Sunnybrook and Women's College Health Sciences Centre, and vice chair of the Ontario Hospital eHealth Council. Another key factor behind the lack of P3s is the uniqueness of e-health initiatives. Information technology (IT) projects lack a definitive business case, an essential element necessary for any successful partnership. As well, investments in IT are not typical of other capital projects. They have a shorter life cycle and require greater levels of stakeholder/user involvement to ensure the success of the end product. As such, there are greater risks associated with IT projects, and their implementation, as compared to other capital initiatives. So finding a risk mix that is acceptable for all partners is difficult."

"Canada Explores Public-Private Partnerships," Anonymous. Railway Age, Jul 2002. Vol. 203, Iss. 7, p. 15
"Canadian Transport Minister David Collenette recently announced that railroad infrastructure is eligible for assistance under the $2 billion Canada Strategic Infrastructure fund that was announced in the Dec. 2001 budget. Collenette said he is interested in public-private partnerships designed to achieve efficient and effective transportation service.

"Private Financing for Public Service," Michael Wilson. Summit, Jun 2002. Vol. 5, Iss. 2, p. 26
" Private finance, in the context of a public-private partnership, is financing raised by the private sector to deliver a public service. Generally, the key issue raised in respect of private finance is why pursue it when governments can borrow more cheaply. This is, and should be, one of the first questions asked when looking at private finance. The correct response is not to deny the low cost of government borrowing, but to demonstrate how this is irrelevant. Other factors that also support the use of private finance for public infrastructure and services: 1. access to capital, 2. accountability, 3. public policy flexibility, and 4. public control vs. ownership."

"P3 for Canadian Hospitals," Michael Wilson. Summit, Mar 2002. Vol. 5, Iss. 1, p. 15
"The health care system in its current form is arguably economically unsustainable. Annual operating costs for health care are in many cases approaching 50% of the provincial budget, and if not controlled, could soon consume it entirely. There is a critical need to make capital investments to improve the stock of infrastructure, IT and medical equipment."

"What is your Opinion of Public-Private Partnerships (P3s)?," David Newman. Summit, Dec 2001. Vol. 4, Iss. 4, p. 2
" Three experts: 1. Bob Fischer, vice-president of Government Relations, Computing Devices Canada, 2. Judy Darcy, national president of the Canadian Union of Public Employees, and 3. Judy Rogers, city manager for Vancouver, offer their opinions of public-private partnerships."

"Navigating P3s," JoAnne Sommers. Summit, :Sep 2001. Vol. 4, Iss. 3, p. 20
"Canada is one of the few countries in the world with a privately owned, operated and financed air navigation service, having arranged for NAV CANADA to be responsible for it since 1996. The federal government's agreement with NAV CANADA, a private, non-share capital corporation, is an example of a P3 at its best. There are powerful reasons for governments at all levels to consider demystifying and implementing P3s. Cost savings is one. The most important ingredient for a successful P3 is mutual respect. Unlike public servants, private companies report to boards, which oversee their financial viability. On the other hand, the public service is responsible for ensuring the public interest."

"Global Spectrum invests in Planned $42 Mil London (Ont.) hockey arena," Linda Deckard. Amusement Business New York, Mar 19, 2001. Vol. 113, Iss. 11, p. 9
"Global Spectrum and its partners are investing $10 million into the new $42 million London (Ontario) Sports and Entertainment Center in what officials term a true public-private partnership." Peter Luukko, Global Spectrum chairman, anticipated more and more public/private deals like this in the future arena construction."

"P3--Problem, Problem, Problem," Louise Bowman. Project Finance, Jun 2000. Iss. 206, p. 25
"Infrastructure has traditionally taken a back seat in Canadian project finance - with the utilities and oil sectors providing the most deals. But changes now underway at both federal and state levels may pave the way for a surge in infrastructure-related deals over the next few years. It is tempting to think that the implementation of initiatives such as Public Private Partnerships (PPPs) mean that there will be an explosion of project financiers in Canada, but that may be being overly optimistic. To date, there have only really been four infrastructure deals of any size in Canada. The province of Ontario has embraced the PPP initiative with the most enthusiasm, with the formation of the SuperBuild Corp. and the new Canada Works program."

"Reading the Fine Print," Joy Keenan. Ca Magazine, Oct 1999. Vol. 132, Iss. 8, p. 41-42+
"Pressured to reduce their debt levels, governments are entering into a growing number of complex arrangements as a means of improving service and delivery, reducing cost or duplication and transferring risk. When such arrangements involve a private sector party, they may be referred to as public-private partnerships (P3s), collaborative arrangements or alternative service delivery. In theory, such arrangements offer many benefits, not least of which is a means of off-balance-sheet financing. However, they can also bring unforeseen pitfalls decision-makers may choose to ignore when assessing an arrangement's viability or comparing it to the cost of the government building the asset or delivering the service in traditional ways."

"Public and Private Partnerships in Economic Development: The Role of the Alberta Economic Development Authority
Robert W Robertson," Economic Development Review, Fall 1997. Vol. 15, Iss. 3, p. 23
"Public and private partnerships are frequently cited as a method of building consensus and forging stronger alliances between both sectors. In Alberta, the Provincial Government has taken the unique step of legislatively creating a public/private partnership (Alberta Economic Development Authority, AEDA) to advise on methods to enhance the economy of the Province. This paper describes the role of AEDA as a public/private partnership."

"Private-Public Partnerships: The Toronto Hospital Experience," Stonehouse, James H, et al. Canadian Business Review summer 1996. Vol. 23, Iss. 2, p.17
"In the fall of 1993, The Toronto Hospital (TTH) embarked on an ambitious program of establishing relationships with a number of private sector organizations with a view to reducing the hospital's operating costs and sustaining, if not improving, quality and productivity. These relationships were originally pursued in connection with the hospital's support service functions. More recently, arrangements have been made and are being cultivated with firms engaged in clinical support services. To date, over C$20 million in savings and revenue are attributable to these combined efforts. The following questions are addressed: 1. What prompted the hospital to take this course of action? 2. Have these relationships been successful in all respects? 3. What lessons can be learned for application in other hospital settings? 4. What have the private sector firms learned from their experience with TTH?"