Modernizing Canada's Approach to Public-Private Partnerships (P3s)

Over the past 30 years, public-private partnerships (P3s) have demonstrated their benefits in delivering high quality infrastructure and services to Canadians with the primary objective of bringing value to taxpayers.

The Council is marking an important milestone in Canada’s infrastructure landscape, with the release of this pivotal document for the P3 industry. Emphasizing collaboration, innovation and practical solutions, our P3 policy primer paves the way for creating resilient, efficient and long lasting infrastructure that meet the evolving needs of Canadian communities.

Based on extensive research and consultation with government and industry, this document sets out a series of considerations and eight key recommendations for government policymakers and private sector decision-makers that provide a clear path forward to work together.

Download Report & Recommendations

These recommendations put Canadian communities back at the forefront of how infrastructure is delivered, operated and maintained in Canada. Delivering dependable, resilient and innovative assets — at the best value — for all of us every day is what matters most.

To do this, we need to get to the core of some lingering and emerging challenges in our country’s infrastructure sector — and share best practices — to get practical and achievable solutions for Canadians enacted now. Quite simply, we need to adapt and evolve.

New asset classes, current market conditions and global precedents are expanding our definition of what a Canadian P3 can be.

The Council believes full lifecycle DBFOM and DBFM models still remain not only viable, but a preferred option for P3s in Canada. However, it is also crucial to explore the appropriate use of other approaches, including revenue-generating concessions and Progressive models, while upholding the key attributes of Canada’s world-renowned P3 model.

Given the Council’s view on the benefits of leveraging private capital in P3s, it will work in close collaboration with members to investigate the potential for the inclusion of private capital in Alliance or IPD models. Look for a workshop on this very issue coming up at P3 2024 this fall.

We look forward to hearing your thoughts and encourage our members to continue to debate, discuss and share new ideas and best practices with each other. It is clear this work — this evolution — is an ongoing processs.

For Members: Download Special Report PowerPoint

The Council recommends:

1. Using private capital to stretch those scarce tax dollars further by bringing enhanced oversight of the investors since they have “skin in the game” to deliver on time and on budget.
2. Thinking long term when procuring infrastructure to ensure there is protected funding for ongoing maintenance, life cycle renewal and operation costs for decades to come.
3. Everyone wins, especially Canadians, when the public and private sectors work together. That's why a nimbler, less rigid approach is needed when it comes to risk allocation.
4. Governments need to see themselves not merely as contractors or service providers but as “industrial owners” with a vested interest in a project's long-term success. They must actively oversee P3 contracts and provide centralized support to P3 contract management to minimize disputes and enhance transparency.
5. Governments should investigate using a Progressive P3 (DBFM/DBFOM) approach for exceptionally large and/or complex projects where earlier contractor involvement could provide significant benefit for Canadian communities.
6. Where possible, governments should consider breaking large, projects (exceeding $500 million) into phases to attract greater competition, produce greater market tension and greater certainty in execution, and cost savings for taxpayers.
7. In the spirit of increasing transparency, rebuilding trust and delivering top quality infrastructure for Canadians, governments should work with each other to share best practices and establish new cross-Canada standards.
8. Governments should evolve procurement approaches to ensure early engagement with private-sector proponents and foster a solutions-oriented procurement environment.

A Huge Thank You to our Members

We sincerely thank the dedicated members of the CCPPP Board, Executive Committee and Communications Committee for their support and participation throughout the development of this policy positioning statement. Their extensive knowledge and experience in the P3 and infrastructure industries have been invaluable in shaping the recommendations in this document.

The Council has diligently compiled and analyzed our members' feedback, opinions, and experiences through numerous meetings and surveys. This effort is further enriched by insights from the Council’s P3 2023 conference and workshops and our enhanced engagement with government ofcials and politicians nationwide, significantly contributing to our understanding of current market challenges and opportunities.

We thank our members for their ongoing support and dedication to advancing best practices and knowledge. Their efforts help create an enabling policy environment that will secure and enhance Canada's infrastructure investment landscape.