Public-private partnerships or P3s are long-term agreements between governments and the private sector to build, expand or refurbish public infrastructure, deliver services and provide maintenance. In Canada, they have been used extensively for roads, bridges, hospitals, water and wastewater treatment plants, transit systems, schools and justice facilities.
Unlike traditional procurement approaches, the public sector integrates multiple parts of a project into one contract that:
- Allocates the appropriate risk transfer to the partner best suited to manage it
- Considers the whole life cycle of the asset
- Drives innovation and efficiencies, and
- Leverages private capital and expertise
Depending on the project’s scope and size (and the P3 model used), the consortium may include one or more developers, designers, constructors, lenders and financial institutions, and maintenance and operation providers. This team works together from the beginning to deliver the asset and look after it long-term.