Why Public-Private Partnerships?

In an increasingly competitive global environment, governments around the world are focusing on new ways to finance projects, build infrastructure and deliver services. Public-private partnerships (PPP's or P3's) are becoming a common tool to bring together the strengths of both sectors. In addition to maximizing efficiencies and innovations of private enterprise, PPP's can provide much needed capital to finance government programs and projects, thereby freeing public funds for core economic and social programs.

Three countries stand out as world leaders in the number and scale of PPP's - the United Kingdom, Australia and the United States (primarily in water & wastewater), although many other countries have successfully implemented PPP projects and are benefiting from the results. What tends to distinguish the leader countries (UK and Australia) is that PPP activity is conducted through a comprehensive government program rather than on a one-off basis as we have tended to do in Canada and the USA.

Canada has developed considerable expertise in the PPP field, both domestically and internationally, and increasingly this is being done through coordinated provincial programs. A recent Council publication entitled "100 Projects: Selected Public-Private Partnerships Across Canada," shows that PPP's have become a successful vehicle to deliver public services in over 25 distinct sectors, at all levels of government. Canada has many high profile projects, such as the Confederation Bridge, Highway 407 Electronic Toll Route, Moncton Water Treatment Plant, St. Lawrence Seaway Commercialization, Kelowna Skyreach Place and Bruce Nuclear Power Plant lease. They demonstrate that PPP's continue to be valuable contributors to our country's economic health.

Criticism of Public-Private Partnerships
Those opposed to public-private partnerships most often cite the loss of public control that occurs when a private sector company is involved in financing, building or delivering public services. Compared to other countries with vibrant P3 activity, the political culture of Canada is often seen as a barrier to further progress on P3's. Especially in such areas as healthcare and when delivering such "public goods" as water, Canadians remain suspect of partnerships that put "shareholder" value above public interest. Public-private partnerships are often seen by organized labour as resulting in job loss, poor quality and lack of oversight. These objections are overstated and often misrepresent fact based research in this field. Publications by CCPPP and others address such issues. We have posted speeches and presentations, as well as remarks from other voices - public and private sector leaders that have shared their views and expertise with a variety of audiences on the subject of P3's. Along with the third party sources and links on this website, The Council has endeavoured to provide as much information as possible from a wide range of areas to inform the debate.