1. The Canadian Council for Public-Private Partnerships
Public-Private Partnerships –
Innovative Delivery of Infrastructure
and Public Services
Mark Romoff
President & Chief Executive Officer
iCANADA Summit
Montreal, October 21, 2012

2. Canadian PPP Market
2

3. Canadian P3 Overview
• 20 year history
• 180 projects
• $58.8+ Billion
3

4. PPP Projects Summary
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+
4

5. PPP Models
5

6. Models of PPP in Canada
Source: The Canadian Council for Public Private Partnerships
6

7. What is a PPP?
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
7

8. 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
8

9. Sample Partnership Structure
Public Sector Agency
Availability
DBFM / O
Payment Agreement
Project Co Developer / Equity Provider
Sub Contracts Senior Debt Agreements
Design & Construction Operator & Life cycle Senior Debt Provider
9

10. About CCPPP
10

11. CCPPP: Mandate
To promote innovative approaches to
infrastructure development and service
delivery through public-private
partnerships with all levels of government
11

12. Who We Are
• Founded in 1993
• Non-profit
• Non-partisan (Public and Private
Sectors)
• Member-sponsored
• National Representation
• International Members
12

13. What We Do
• 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
13

14. The Canadian Council for Public-Private Partnerships
www.pppcouncil.ca