OECD, 7th Meeting on Public-Private Partnerships - Greg SMITH


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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

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OECD, 7th Meeting on Public-Private Partnerships - Greg SMITH

  1. 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. 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. 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. 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. 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. 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. 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. 8. Canadian VfM Methodologies Alberta British Columbia Ontario PPP Canada developed methodology: Procurement Options Analysis Guide 8
  9. 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. 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. 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. 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