Public Works Financing: The Canadian approach recognizes the value of having private financing as part of the mix of funds in a P3. It forces government to be more diligent in how they structure procurements, and it forces the private partners to be more disciplined in project execution.
Here’s Sarah Clark, President and CEO of Partnerships British Columbia (PBC) on the DBF procurement of the Evergreen Light Rail project in Vancouver, BC:
“Encouraging innovation, providing due diligence during bidding, monitoring construction, managing the interface between the participants, dealing with claims, etc. are done better when there’s an “F” on the DB team.
“Those benefits don’t come without public sector discipline. To maximize the value of using the “F”, it comes into every thought about the project. It takes planning to decide how you’re going to derive the benefit from having private capital at risk.”
Proposition: When U.S. governments get to this level of sophistication, the P3 model will deliver much greater benefits to taxpayers.
Discussion leader Matt Girard, Plenary Group