This presentation by Greg SMITH was made at the 7th Meeting on Public-Private Partnerships held on 17-18 February 2014. Find more information at http://www.oecd.org/gov/budgeting/ppp.htm

1. Achieving better value, timeliness and accountability through
public-private partnerships
OCED
Senior PPP Officials Network
Presented by: Greg Smith
Vice-President, Finance, Risk, Administration and CFO
February 18, 2014

2. The Canadian Context
• Broad definition of P3s
across jurisdictions in
Canada
• Over 200 projects across
the country
• More than 100 currently
completed construction or in
the operations phase (many
of these represent projects
in the same sector and
same jurisdiction
(ie. Ontario hospitals) 2

3. The Canadian Context
• Another 100 yet be procured
or complete construction –
many jurisdictions not yet
thinking about the long-term
management
• Less reliance on banks –
weathered the economic
crisis
3

4. Why Is Canada Successful?
• VfM a driver of Canadian P3s
– transfer of risk
• Experienced public sector
institutions
• Competitive market
• Very successful Canadian
bond market
• Continuous learning &
adaptation
4

5. PPP Canada
A Centre of Excellence for P3s
•
Acts as a Source of Expertise
Developing and sharing knowledge to provide
P3 leadership
•
Advances Federal P3 Projects
Advises federal clients on the identification,
development, and execution of federal P3s
•
Supports Other Levels of Government
Advises on, and invests in P3 projects being
considered by provinces, municipalities, and
First Nations
5

6. A Source of Expertise: Objectives
• Establishing P3s as common practice
• Promoting skills development
• Sharing expertise relating to managing P3 infrastructure projects,
writing P3 contracts
Mechanisms
• Outreach activites
• Tool development
• Engagement initiatives
6

7. Canadian VfM Methodologies
Jurisdictions analyze the same project elements and essentially yield the
same conclusion, although there are differences in methodologies:
Different discount rates (risk-free vs. risk-adjusted)
Quantify risks differently (imperical evidence vs. workshops)
Different treatments of innovation and efficiencies (substantiated)
www.p3canada.ca
7

8. Canadian VfM Methodologies
Alberta
British
Columbia
Ontario
PPP Canada developed methodology:
Procurement Options Analysis
Guide
8

9. Managing the Operational Period
• Project Agreement forms the basis of the operations and/or maintenance
obligations
• Essential that the most important components of the Project Agreement be
prepared early so that they are clearly articulated and understood
 functional and performance-related requirements; and
 the associated payment mechanisms / deduction regime.
9

10. PPP Canada Operational Period Initiative
Reviewing and evaluating best practices, issues, risks and key success factors,
including but not limited to:
Governance
• Governance arrangements / oversight
• P3 Contract administration / staffing and management
resources
Performance
•
•
•
•
Deduction regime, payment adjustment, holdbacks, incentives
Escalation processes
Independent expert
Asset hand back upon expiry
10

11. PPP Canada Operational Period Initiative
Management and Administration
• Internal and external communication
• Reporting and record keeping
• Compliance with applicable federal / provincial and municipal laws
Amendments and Integration
• Modification and change orders
• Integration with existing infrastructure
• Other works / expansion post project agreement
Dispute Resolution
• Disagreements, default, remedies and termination
• Step-in and continuous operation provisions
11

12. CONTACT US
100 Queen Street, Suite 630
Ottawa, Ontario K1P 1J9
Canada
www.p3canada.ca
Telephone: (613) 947-9480
Fax: (613) 947-2289
Toll Free : (877) 947-9480
Email: info@p3canada.ca