Our municipalities own and operate the majority of Canada’s public infrastructure, making them responsible for delivering some of the most critical services we depend on every day — clean drinking water, environmentally responsible solutions to deal with waste and wastewater, safe and reliable transportation options and recreational facilities.
With aging infrastructure, growing populations, expanded responsibilities in social services, and climate change mitigation, coupled with shrinking federal and provincial infrastructure grants, municipalities face tough choices: either increase debt or raise property taxes to cover funding gaps. This challenge is compounded by rising operations and maintenance (O&M) infrastructure costs.
Municipalities require innovative solutions and revenue streams that consider the entire life cycle of infrastructure assets and support sustainable development and economic growth. Now, is the time to rethink how we fund municipal infrastructure projects in Canada.
Embracing alternative procurement approaches that harness private capital and expertise, such as Public-Private Partnerships (P3s), is essential for municipalities to deliver, operate and maintain quality infrastructure and make good on their promises to residents.
In his Opening Keynote at Canada's Infrastructure Conference, Josh Morgan, Chair, Big City Mayors' Caucus and Mayor of London, ON, discussed the pressing need for new investments in municipal infrastructure across Canada, and how innovative partnerships between the public and private sector can help ensure the sustainable development of Canadian cities. Mayor Morgan explored:
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.
To help municipalities interested in exploring alternative infrastructure procurement finance models, including P3s, the Council has leveraged decades of experience, best practices and lessons learned to create two key digital tools and a webinar series to provide practical guidance and key recommendations for municipalities to consider.
With the support of our Municipal Engagement Advisory Group (MEAG), which includes public and private sector experts, we're adding 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.
Our first tool is a newly updated Guide containing the latest information on infrastructure procurement models, best practices and new mini municipal case studies. The intent of the Guide is to demystify the use of public-private partnerships (P3s) for municipal stakeholders, improve accessibility and ensure that the unique jargon, structures, and instruments — often seen as distinct from traditional procurement approaches — do not deter public servants from meeting their communities’ infrastructure needs.
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.
Our second 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 and is meant to work in tandem — where appropriate — with others such as the Federation of Canadian Municipalities and their Municipal Growth Framework.
CCPPP recognizes that significant challenges and negative criticisms surrounding high-profile megaprojects — transit-related, in particular — have recently tested the 30-year reputation of the P3 model in Canada.
The sector, including both public and private leaders, is heeding these concerns and working collaboratively through CCPPP to evolve the P3 model to resolve contentious issues such as risk transfer, which can adversely impact project budgets and timelines. This evolution seeks to put communities back at the forefront of infrastructure delivery, operation, and maintenance in Canada.
The issues P3 projects have recently encountered are not unique. CCPPP’s private sector members maintain that current market conditions — combined with unrealistic project timelines and budgets, challenges with risk transfer and limited competition due to the prevalence of large-scale projects ($500M+) — are making it difficult for all public infrastructure procurements regardless of the procurement model used, to deliver projects on time and on budget.
As the voice of Canada's infrastructure community, the Council offers unique networking opportunities, industry insights gleaned from important research & thought leadership opportunities, while advocating for the sector and promoting the use of public-private partnerships. Amplify the voice of your organization with membership.
To learn more about joining our network, please contact Rachel King, Director, Events and Member Services, at rking@pppcouncil.ca, via our contact form below.
