Adapting the Model

Canada’s public-private partnership (P3) model has successfully delivered projects for more than 30 years because of the willingness of the public and private sectors to work together and collaborate on finding solutions to complex infrastructure-related problems.

This has included challenges in delivering projects, but also in adapting and evolving the model itself. The deal structures of today are not the same as when Canada originally embarked on its P3 journey in the early 1990s.

Issues around risk transfer, the increasing size and complexity of projects, and moving into new asset classes combined with current market conditions, have put significant pressure on projects in the market and on the model. In recent years, this has led to instances of fraying collaboration, increased litigation, loss of competition in the market, and delays in projects, which have had a significant impact on our communities awaiting the completion of construction and the start of operations.

Recognizing that the public sector remains committed to infrastructure procurement models that drive value for taxpayers and the keenness of the private sector to innovative and participate in these types of projects, the Council is working with its members to seek solutions and develop opportunities for the next wave of Canadian P3s. 

This includes:

• Working with our members to better understand how public sector decision-making is changing to better respond to the needs of its citizens and to ensure the best value in infrastructure delivery
• Taking stock of how the model has worked and areas that need improvement, such as rebalancing risk transfer, and
• Designing a common understanding of the shift in procurement strategy for new Progressive P3 models and how and when they should be applied.

With the Council's unique ability to have both public and private sector leaders at the table, we can work to ensure Canada’s P3 model continues to respond to the needs of our communities, now and for the long term.

NEXT STEPS

On October 26, 2023, CCPPP released The Evolution of Canada’s Model Discussion Paper, the culmination of 18 months of research and discussions with public and private members to deepen understanding of the key issues with which partners are struggling and the opportunities they see to move forward and develop a more robust and innovative market.

While there is a demonstrated commitment to finding solutions, it is quite evident that we need to clearly and concisely articulate the major issues to ensure a common understanding and path forward.

This discussion paper aims to highlight key themes and comments from members on the status of the market, to highlight key pressure points amongst the industry, and to encourage further discussion.

At P3 2023, workshops will more broadly explore these issues, confirm concerns and propose solutions. Specifically, we are seeking input from delegates to pinpoint what is working in the model, what needs to adapt, and what solutions will drive change, advance the model and grow the project pipeline. 

Download the The Evolution of Canada’s Model Discussion Paper