Auditor General’s report paints inaccurate picture of P3 model: CCPPP
The Canadian Council for Public-Private Partnerships (CCPPP) is concerned that the report from the Ontario Auditor General on Alternative Financing and Procurement (also known as public-private partnerships or P3s) paints an inaccurate representation of the P3 model the report.
CCPPP says the report confirmed many of the benefits of the model, including the savings as a result of avoided risk, the strong record of projects completed on-time and on-budget, and where cost overruns have occurred, in the vast majority of cases the private sector was on the hook for the full amount. It also agrees with the Auditor General’s observation that Infrastructure Ontario has a “strong record of delivering projects such as hospitals, courthouses, and detention centres on time and on budget.”
CCPPP pointed out there are 220 P3/AFP projects in operation, under construction, or in procurement across Canada and across a variety of priority sectors of the economy. The value of those projects which have reached financial close exceeds $70 billion. Ontario is leading the way with over 100 AFP projects, the majority of which have been procured by the Government of Ontario.
An independent study recently completed by InterVISTAS Consulting Inc. established the major impact of P3s on Canada’s economy, employment and competitiveness. Cumulative economic impacts over the decade under review include:
- $517,430 total full-time equivalent (FTE) jobs, including 290,680 direct FTE jobs
- $32.2 billion in total income/wages and benefits, including $19 billion in direct income/wages and benefits
- $48.2 billion in total gross domestic product (GDP), including $25.1 billion in direct GDP
- $92.1 billion in total economic output, including $51.2 billion in direct economic output
- $7.5 billion in tax revenue to government
- $9.9 billion in cost savings for taxpayers over the traditional procurement method
Canadians are also overwhelmingly supportive of P3s, with 62 per cent being open to their use and that number rises to over 70 per cent in communities where residents are aware of a particular project.