T h e C a n a d i a n C o u n c i l f o r P u b l i c - P r i v a t e P a r t n e r s h i p s

Public-Private Partnerships –Innovative Delivery of Infrastructure

and Public Services

Mark Romoff President & Chief Executive Officer

iCANADA SummitMontreal, October 21, 2012

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Canadian PPP Market

Canadian P3 Overview

• 20 year history

• 180 projects

• $58.8+ Billion

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Sector Number Value ($B)

Transportation 39 24.0

Hospitals & Healthcare 63 20.6

Justice/Corrections 18 5.4

Energy 5 4.3

Education 9 1.4

Defence 1 0.9

Environmental 21 0.8

Real Estate 3 0.7

Recreation & Culture 16 0.5

Government Services 5 0.2

Total 180 58.8+

PPP Projects Summary

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PPP Models

Models of PPP in Canada

Source: The Canadian Council for Public Private Partnerships

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What is a PPP?

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In a typical Design-Build-Finance-Maintain PPP:

• A single entity (“Project Co”) contracts with government and in turn contracts with consortium partners

• The private sector accepts responsibility for Design, Construction, Financing, Maintenance and in some cases Operations

• The facilities management component covers a long term concession period (25 – 35 years) with pre-defined hand back conditions

• Contracting arrangements are performance based

– Payment from Government only begins upon completion of construction

– On-going payments remain subject to deduction for failures in service delivery

P3 versus Traditional Procurement

• Value for money

• Risk identification and sharing/allocation

• Whole of Life costing

• Lifecycle maintenance

• Performance-based contract

• Fixed Price/Non Performance Penalties

• Competitive procurement

• Transparency and Fairness

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Sample Partnership Structure

Design & Construction

SubContracts

Project Co Developer / Equity Provider

Public Sector Agency

Operator & Life cycle Senior Debt Provider

Senior Debt Agreements

AgreementDBFM / O

AvailabilityPayment

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About CCPPP

CCPPP: Mandate

To promote innovative approaches to infrastructure development and service delivery through public-

private partnerships with all levels of government

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• Founded in 1993

• Non-profit

• Non-partisan (Public and Private Sectors)

• Member-sponsored

• National Representation

• International Members

Who We Are

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• Promote collaborative partnerships between public sector agencies/departments and industry

• Educate stakeholders and the community on the economic and social benefits of P3

• Advocate for evidence-based public policy in support of P3s

• Facilitate the adoption of international best practices

• Promote Canada’s P3 model and expertise globally

What We Do

T h e C a n a d i a n C o u n c i l f o r P u b l i c - P r i v a t e P a r t n e r s h i p s

T h e C a n a d i a n C o u n c i l f o r P u b l i c - P r i v a t e P a r t n e r s h i p s

www.pppcouncil.ca