CCPPP Releases Policy Recommendations to Rethink Municipal Infrastructure Procurement & Financing

TORONTO (October 31, 2024) — Today, CCPPP is releasing two key digital tools to add our industry’s voice and expertise in support of an urgent need for a national conversation to rethink how we fund and finance municipal infrastructure in Canada.

The Council recognizes the critical role municipalities play in delivering and managing the majority of Canada’s public infrastructure and we are committed to helping local governments address the complex challenges they face.

By leveraging decades of experience, best practices and lessons learned, these new documents provide practical guidance and key recommendations for municipalities exploring alternative finance models, including P3s.

Our first tool is a policy primer aimed at empowering municipal governments on how they can unlock the potential of P3s for community building, infrastructure delivery and asset management. The primer sets out a series of considerations and 11 recommendations for all levels of government.

Download Municipal Primer & Recommendations

This document works in tandem with the Modernizing Canada’s Approach to P3s policy primer and recommendations, released by the Council in August.

The second tool the Council is releasing today is an update of our Public-Private Partnerships: A Guide for Municipalities, which contains the latest information on procurement models, best practices and new mini case studies.

Originally published a decade ago, this 56-page guide has proven an invaluable resource as Canada has undertaken more than 50 municipal P3 projects to date and counting.

Download Public-Private Partnerships: A Guide for Municipalities

These major policy and research projects were led by our Municipal Engagement Advisory Group (MEAG) and involved input from CCPPP’s Board, Communications Committee and Executive Committee.

MEAG includes both private and public sector experts, including municipal reps from Calgary, Edmonton, Kelowna, Mission, Toronto, Winnipeg and Vancouver. Special thanks to MEAG Chair Tom Barlow, Partner, Fasken and Vice Chair Sam Johnson, Director of Development, Graham Capital for spearheading these efforts with Michelle Coates Mather, the Council’s head of policy and public affairs.

Help us spread the word!

We invite our members to share these digital tools with their municipal contacts. By championing best practices and collaboration, we can empower municipalities with the resources they need to make informed decisions and deliver resilient, long-term infrastructure that our communities can depend on.

— Lisa Mitchell President & CEO, CCPPP

The Council recommends:

Municipal Government Recommendations

1. Integrate long-term operations and maintenance into budgets to ensure funding strategies account for operations and maintenance costs before construction begins, preventing infrastructure deficits and asset deterioration.
2. Explore P3 project bundling to reduce overall costs, minimize staffing demands for overseeing multiple contractors, transfer risk, expedite delivery, and achieve economies of scale to attract private capital.
3. Engage P3 expertise to address capacity challenges by retaining advisors with specialized infrastructure knowledge, particularly in finance and P3 procurement, ensuring effective project execution.
4. Foster collaboration and conduct market soundings to promote transparent collaboration with private sector partners through informal consultations before issuing RFQ and RFP documents, ensuring project success and value for taxpayers.
5. Educate elected officials on procurement to balance transparency with the need to protect the integrity of the bidding process and prevent politicization by educating officials on procurement practices.
6. Build and maintain public trust and transparency, particularly regarding completion timelines and potential construction disruptions to secure ongoing community support and buy-in.
7. Activate unsolicited proposal frameworks to create avenues for non-profits and the private sector to propose innovative solutions that address municipal challenges.

Federal, Provincial and Territorial Government Recommendations

1. Enable municipalities to explore P3 and innovative funding by removing barriers in federal and provincial grant and contribution terms and conditions that may inadvertently restrict municipalities from exploring alternative financing options, such as P3s.
2. Support the Federation of Canadian Municipalities (FCM) call for a new municipal framework to ensure municipalities have access to revenue tools that support the full range of services they provide, including capital and operating costs.
3. Federal, provincial, and territorial funding for municipal infrastructure must include operations and maintenance to safeguard these costs and ensure infrastructure projects' long-term sustainability and functionality of infrastructure projects.
4. Engage in joint efforts with CCPPP to advance P3 capacity building tools to enhance municipal knowledge, understanding, and capacity to evaluate and deliver these projects.