Public–private partnership in Canada
Alternative service delivery / From Wikipedia, the free encyclopedia
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Public–private partnership (PPP or P3) in Canada is a form of alternative service delivery that involves a formal, collaborative arrangement between the public and private sectors, typically of a long-term nature.[1][2] Public–private partnerships are commonly used for infrastructure projects related to healthcare, transportation, the environment, justice and correction, recreation and culture, and education.[3][2]
The history of P3 projects in Canada can be divided into two waves: 1990–2000 and 2000–present.[3] Over 220 P3 projects have been undertaken in Canada.[3] The earliest and most commonly known examples of P3 projects are Highway 407 in Ontario, the Royal Ottawa Hospital, and the Confederation Bridge linking New Brunswick and Prince Edward Island.[3]
The original rationale for P3s was to provide cities with top-quality infrastructure without creating more direct public-sector debt; they allowed governments to make off-balance-sheet investments in infrastructure.[3] Advocates argue that P3s make use of the expertise and innovation of the private sector and the incentive of capital market to enhance public projects. They argue that P3s provide better value for money than traditional procurement methods because they transfer a project's risk from the public to the private sector.[1][4] Indeed, under P3s, financial responsibility for a project can either be shared or transferred to the private sector.[4] PPP Canada was a Crown corporation with the duty of contracting out several services to the private sector, as well as providing funding at both the federal and provincial levels.[4]
P3s in Canada have received notable criticism from scholars, stakeholders, and the media.[3] Complaints revolved around the issues of accountability, higher costs, loss of democratic control over public services, and the user fee rates of some projects.[3] Discrepancies between steering and rowing, level of public interest, labour relations, autonomy and accountability, and savings and performance are often topics of P3 debates.[1] Some critics question how the conflicting values and operations of the public and private sectors affect the ability to achieve desired goals efficiently.[1] A common area of debate concerns how the goal of economic gain in private-sector values interacts with the public-sector value of public good. There is evidence both in favour of and against P3s.