Public–private partnership in Canada
Public-private partnerships in Canada, (PPP or P3) is a form of alternative service delivery that involves a formal collaborative arrangement between the public and private sector in several initiatives, typically of a long-term nature. Public–private partnerships are commonly known for being used for infrastructure projects related to healthcare, transportation, the environment, justice & correction, recreation & culture, and education. The history of P3 projects in Canada can be understood in two waves: the first wave (1990–2000) and the second wave (2000–present). Since its Canadian origins, over 220 projects have been facilitated. The first 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. The original rationale of P3s was to provide cities with top quality infrastructure without creating more direct public sector debt; they allowed for governments to make off-balance-sheet investments in infrastructure. 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 P3s provide better value for money than traditional methods of procurement because they transfer a project's risk from the public to the private sector. Indeed, under P3s, financial responsibility for projects can either be shared, or put upon the private sector. PPP Canada is a crown corporation developed by the government, with the duty of contracting out several services to the private sector, as well as provide funding on both federal and provincial levels. P3s in Canada have received notable criticism from scholars, stakeholders, and the media. Complaints revolved around the issues of accountability, higher costs, loss of democratic control over public services and the user fee rates of some projects. Discrepancies between steering and rowing, level of public interest, labour relations, autonomy and accountability, and savings and performance are often topics of P3 debates. Critics question how some the conflicting values and operations of the independent public and private sector effect the ability to achieve desired goals efficiently. The most common debate is how the goal of economic gain in public sector values interacts with the public sector value of public good. Evidence in favor of P3s and against P3s are available. Definition There is no consensus about how to define a PPP. The term can cover hundreds of different types of long-term contracts with a wide range of risk allocations, funding arrangements, and transparency requirements. The Canadian Council for Public-Private Partnerships, a longstanding promoter for P3s in Canada, defines them as "a cooperative venture between the public and private sectors, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards". According to Simon Fraser University professor Aidan R. Vining, "a P3 typically involves a private entity financing, constructing, or managing a project in return for a promised stream of payments directly from government or indirectly from users over the projected life of the project or some other