Alberta Transportation issued the following announcement on Dec. 1.
The Public-Private Partnership Framework and Guideline (P3 framework) and the Unsolicited Proposal Framework and Guideline (USP framework) will help Alberta’s government find alternative ways to build infrastructure, create jobs and stimulate the economy while making the most of limited taxpayer dollars.
“As part of Alberta’s economic recovery, it’s more important than ever our infrastructure investments are thoughtful and strategic. The P3 and USP frameworks provide government greater flexibility to deliver infrastructure and encourage the private sector to come forward with creative ways and financing solutions to help provide the facilities and other infrastructure Albertans need.”
Prasad Panda, Minister of Infrastructure
With these changes, the government will have increased options as to what P3 model can be considered for capital project delivery, including variants such as design-build-finance and revenue-based P3s like build-operate-transfer.
Additionally, the new USP framework enables Alberta’s government to consider unsolicited infrastructure investment opportunities. Prior to this framework, such opportunities may have been missed or rejected because there wasn’t a mechanism in place to process them. The private sector is encouraged to submit proposals via email as identified within the USP framework.
Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify, and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefiting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth.
Quick facts
A number of public-private partnership (P3) models are addressed in the updated P3 framework. These include:
Design-build-finance-maintain (DBFM) – a contractor is hired to design, build, finance and maintain a major capital investment such as a school or a road.
Design-build-finance-maintain-operate (DBFO) – a contractor is hired to design, build, finance and operate a major capital investment such as a water/wastewater treatment plant.
Using the DBFM or DBFO models, Alberta has successfully delivered 40 schools, ring roads in Calgary and Edmonton, and a water/wastewater treatment plant in Kananaskis Country. The total savings for Alberta taxpayers on these P3 projects is about $3.3 billion.
Currently, the government is in the procurement stage to secure a contractor to deliver a bundle of five high schools using a DBFM P3.
Design-build-finance (DBF) – a contractor is hired to design, build and finance a major capital investment.
Build-operate-transfer (BOT) – a contractor is hired to design, build, finance and operate the infrastructure for a period of time with the goal of the private sector (contractor) recouping its investment directly from the users of the infrastructure. Once investment is recouped, operation of the infrastructure is transferred to the government.
An unsolicited proposal (USP) is a proposal for an infrastructure project initiated by the private or non-government sector pertaining to a project not previously identified in the Capital Plan.
Original source can be found here.
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