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Confederation Bridge (New Brunswick/PEI)
Completed in 1997, this fixed link across the Northumberland Strait
used innovative design techniques including onshore construction,
floating crane assembly, resulting in a 100-year service life. The design,
build, finance, operate model replaced numerous ferry services
operating between the two provinces. The Federal Government pays a
yearly fee to Strait Crossing Inc., which in turn charges tolls to
users under a 35-year agreement. Photo credit:
www.johnsylvester.com Legislative Assembly
(Iqaluit, Nunavut)
The partnership between
Nunavut Construction Corporation and the Federal Government consists
of a design, build, own, operate agreement. Along with the
Legislative Assembly, reflecting the importance of the igloo in
Inuit culture, nine other government buildings completed in 2000 are
included in the 20-year lease arrangement.
Prospera Place (Kelowna, BC)
The 30-year
design-build-operate agreement with RG Properties included a $6
million investment by the City in the centre's holding company and
sliding scale lease payments. The facility and lands will be sold
back to the City for $1. The 6,000-seat stadium was completed in
1997 and hosts a WHL hockey team, major concerts, business functions
and community events. The facility was formerly called Skyreach
Place. Central North
Correctional Centre (Penetanguishine, Ontario)
This 1,100-inmate facility was completed in 2001 and is the
first adult correctional centre in Canada to operate fully under a
public-private partnership. The five-year performance based
operations contract with Management & Training Corp. is valued at $170.8 million and
achieves the government's objectives for a safe, secure, effective,
efficient and accountable correctional system. Lower re-offending
rates and operating costs as well as the project's success make this
an innovative model for other jurisdictions.
Highway 407 (Toronto, Ontario)
The largest
Canadian PPP to date, the original 69-kilometre toll highway was
sold to 407 ETR in 1999 for $3.1 billion, which operates it under a
99-year lease. Extensions in the east and west are designed,
financed and built by the company, which has the authority to set
tolls provided it meets provincial traffic congestion relief
targets. Using a cutting edge system of transponders and vehicle
detection equipment, an average of 300,000 users per weekday travel
along the road running from Burlington to Pickering.
John Labatt Centre (London, Ontario)
This
9,000-seat sports and entertainment complex was developed under a
design-build-finance-operate-maintain contract with a private sector
consortium called London Civic Centre Limited Partnership (LCCLP). The City
created a special purpose Trust that entered into 50-year ground and
occupancy leases with LCCLP, which assumed construction and operation
risk as well as a 20-year lease with the London Knights hockey team.
Capital cost was $46 million and revenues are shared on a sliding
scale weighted from LCCLP to the City over the life of the agreement. Highway 104 (Nova Scotia)
The 45-kilometre highway between Truro and Amherst, bypassing the
Trans Canada Highway, was opened in 1997. Atlantic Highways
Corporation was contracted by a non-profit, sole shareholder company
(Western Alignment Corporation) to build the highway and operate the
toll system for 30 years. Cobequid Pass was the first highway
project in Canada to include non-recourse financing.
Water Treatment Facility (Moncton, New Brunswick)
The treatment facility serves 100,000 people in Moncton and
neighbouring Dieppe and Riverview. USF Canada designed, built,
financed and operates the facility under a 20-year
licensing arrangement. The $85 million contract is expected to save $12
million over 20 years, and has brought much-improved water quality
to residents.
Teranet (Toronto, Ontario)
Teranet was
formed in 1991 to automate and operate Ontario's land registration
system. Owned 50-50 by a private consortium (Teramira Holdings Inc.)
and the Province of Ontario, Teranet allowed the rapid automation of
land information that would have taken too long under traditional
government operation. It has developed several new operating
companies and expertise in e-government, with over 800 employees
serving customers worldwide. Bay of Fundy Ferry
Services (Atlantic Canada)
Due to high
subsidization rates and as part of its overall commercialization
activities, the Federal Government transferred the Yarmouth-Bar
Harbor and Digby-Saint John ferry services to NFL Holdings in 1997
under a five-year contract (renewed in 2002). The services are now
fully independent of subsidies and the Cat service between Bar
Harbor and Digby is considered the fastest car ferry in North
America (it reduced travel time from 6.5 hours to 2.75 hours).
Five Corners Project (Chilliwack, BC)
This
downtown revitalization project combined a new law courts,
commercial building, clock tower and civic plaza and involved the
City, Province, BC Buildings Corp. (BCBC) and Van Maren Construction
Group. Financial contributions totalled $11.8 million, with BCBC
owning the law courts, the City owning the clock tower/plaza and Van
Maren owning the commercial building. Cost savings were significant
- the original estimate for the law courts was $21 million (versus
the final $8 million) - and the City receives new property tax
revenues from the commercial building and law courts. Collicutt Centre (Red Deer, Alberta)
This new arena provided much-needed indoor recreation space to
residents. Built by the private sector on time and on budget, $2
million in capital funding for the project was given by local sports
organizations and $1.8 million from the private sector. It
experiences 80% cost recovery (versus traditional 50-60%) due to
partnerships with the gymnastics club and hockey commission as well
as leases with corporate tenants. Royal Ottawa
Hospital (Ottawa, Ontario)
In 1996, the Royal
Ottawa Health Care Group signed a five-year facility management
services agreement with Brookfield LePage Johnson Controls (BLJC) to
operate the Royal Ottawa Hospital (and later Brockville Psychiatric
Hospital). The company provides the full spectrum of facility
management services for a fixed annual fee. The 100 employees were
transferred with equivalent wages, benefits and pension and $6
million was saved over five years, exceeding projections.
WAVE Transit (Whistler, BC)
BC Transit and
the Resort Municipality of Whistler outsourced the operation of
municipal transit in 1991, with Whistler Transit Limited operating
the system since 1993. The company is responsible for staffing and
operating risk as well as fare collection and security. Benchmarked
against other transit systems in BC, Whistler is providing excellent
value for money, with an annual ridership of 2.5 million people.
Charleswood Bridge (Winnipeg, MB)
One
of the first major PPP's in Canada, this project consisted of a
design-build-finance-own-maintain agreement between the City and DBF
Limited. Under the 30-year contract, the City makes ascending lease
payments, and ownership is transferred at the end. Capital costs
were $10 million, estimated to be $1 million less expensive than a
City-run project and delivered two years faster.
Water/Wastewater Treatment Facility (Goderich, Ontario)
The Town of Goderich operations and maintenance contract with USF Canada Inc. includes
operation of water supply and distribution as well as wastewater
collection and treatment. The five-year agreement resulted in
regulation compliance that was becoming a challenge for the Town to
meet on its own as well as estimated annual savings of $111,883.
Additional savings resulting from efficiencies or improvements are
shared between the partners.
NavCanada (Canada-wide)
Ownership and
operation of Canada's civil air navigation system was transferred
from the Federal Government to NavCanada (a private non-share
capital corporation) in 1996, the first PPP of its kind in the
world. Stakeholder representation on the Board ensures that user
fees, which fund 100% of the system, are reasonable. The company
employs 5,250 people and manages assets valued at $2.2 billion, and
has significantly decreased operating irregularities while improving
efficiencies. back to top |