CCPPP - N.S. School Bundles

N.S. School Bundles (4 Bundles)

Location: 39 schools throughout Nova Scotia

Status: In Operation

Provincial/Federal/Municipal: Provincial

Date of Financial Close: 1996-1997

Date of Substantial Completion: 1997-1998

Type of P3: DBFOM

Value of Partnership: TBC

Handback: 2018-2020

The Nova Scotia P3 school program involved the construction and delivery of 39 new schools in partnership with four developers between 1996 and 2001. The developers were Scotia Learning Centres; OMERS (Ontario Municipal Employees Retirement System) and Ashford Investments; Nova Learning; and the Hardman Group.

The purpose of the program, which is an early example of P3 procurement in Canada, was to address population growth/classroom overcrowding and to replace aging educational infrastructure. This initiative represented approximately two million square feet (9.5 per cent) of the province’s total school space.

The program was divided into an initial pilot phase using a net lease model for six schools, and a main phase using a "turnkey" model for 33 schools. The P3 contracts transferred the risks of design, construction and long-term maintenance to the private sector for a 20-year term.

In 1998 a standard approach was taken with all P3 agreements, but there were differences in contract terms based on individual negotiations. Scotia Learning Centres was the first consortium to reach a deal with the province.

The first school, O’Connell Drive Elementary in Porter’s Lake, opened in September 1997. Financial close for the main bundles occurred between February 1998 and June 1999, with most schools completed by 2001.

Under the terms of the 20-year P3 agreements with the four developers, the province had the right to purchase the schools, surrender the schools back to the developer or extend the lease agreement as the P3 agreement termination date approached.

In July 2016, the Nova Scotia government announced it was exercizing its contractual right to purchase two schools from Nova Learning for $12.9 million after the leases expired in July 2018. The schools were O'Connell Drive Elementary School in Porters Lake and Riverside Education Centre in Milford, Hants Co.

In Budget 2018-19, the government also announced it was buying Horton High School in Greenwich from the Hardman Group.

On November 2, 2016, the province announced it was purchasing 12 schools from Scotia Learning Centres for $85.9 million after the P3 leases expired in in June and August of 2020.

"In these cases, purchasing is more affordable than extending the leases and provides the added benefit of ownership while providing a long-term solution to providing schools for these areas," said Education and Early Childhood Development Minister Karen Casey in a news release.

The purchased schools included: Lockview High School; St. Margarets Bay Elementary School; Madeline Symonds Middle School; Park West School; Portland Estates Elementary School; Ridgecliff Middle School; Sackville Heights Elementary School; Bedford South School; Eastern Passage Education Centre; Ecole Beaubassin; Ecole Bois Joli; and Enfield District School.

On November 29, 2016, Nova Scotia announced it was buying 11 schools from OMERS and Ashford Investments for $50.5 million when the P3 leases expired in November 2020. The province declined to purchase two schools in Cape Breton: Harbourside Elementary School and Sherwood Park Education Centre.

The schools were developed in partnership by BPC Penco (Nova Scotia) Inc., a portfolio company of OMERS (Ontario Municipal Employees Retirement System), and Ashford Investments.

The purchased schools included: Amherst Regional High School; Greenfield Elementary School, River Ryan, Jubilee Elementary School, Sydney Mines; North Highlands Elementary School, Aspy Bay; Riverside Elementary School, Albert Bridge; Tamarac Education Centre, Port Hawkesbury; Cape Smokey Elementary School, Ingonish; Richmond Education Centre/Academy, Louisdale; Aspotogan Consolidated Elementary School, Hubbards; Cape Breton Highlands Education Centre/Academy, Terre Noire; and East Antigonish Education Centre/Academy, Monastery.

In July 2017, the Nova Scotia government announced it was buying 10 P3 schools from Nova Learning and Ashford Investment for $49.3 million.

Three schools were purchased from Ashford Investments for a total price of $16 million: Antigonish Education Centre, Antigonish; Bayview Education Centre, Port Hood; and Dalbrae Academy, Mabou.

Seven schools were purchased from Nova Learning for $33.2 million: Maple Ridge Elementary School, Lantz; Meadowfields Community School, Yarmouth; Champlain Elementary School, Granville Ferry; Forest Ridge Academy, Barrington; Bayview Community School, Mahone Bay; Pine Ridge Middle School, Kingston; and Northeast Kings Education Centre, Canning.

The purchases brought the P3 school program to its conclusion, with 37 schools purchased and two surrendered or returned to the developer. The total cost of purchasing the 37 schools was $215.9 million.

A 2016 report by the province's Auditor General stated the province spent roughly $700 million on P3 lease payments over the 20-year term for these schools.

Partners:

Public: Government of Nova Scotia, Nova Scotia Department of Education

Private: The four developers were Scotia Learning Centres; OMERS and Ashford Investments; Nova Learning; and the Hardman Group.

Awards: National Awards for Innovation & Excellence in P3s' Winner for Infrastructure, 1998 for O’Connell Drive Elementary School