Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

P3s can add significant costs to Canadian highway projects, study finds
Construction DIVE ^ | November 13, 2019 | Jenn Goodman

Posted on 11/27/2019 2:55:22 PM PST by Tolerance Sucks Rocks

A study of the public-private partnership project delivery method has some cautionary advice for governments and contractors considering them.

Entitled "Highway Robbery: Public Private Partnerships and Nova Scotia Highways" by the Canadian Centre for Policy Alternatives, the study urges jurisdictions to stop using the model to build highways. The report concludes that governments should instead employ traditional public procurement, based on its findings that contracting out services through a P3 is more expensive than public procurement, has the potential to compromise highway safety, needlessly duplicates government services and lacks mechanisms for public accountability.

“Public infrastructure and services should remain fully in the public sphere,” said lead author Christopher Majka​. He told Construction Dive that although his study looked at Canadian P3s it has ramifications for U.S. projects as well.

The Centre says it is an independent, non-partisan research institute focused on social, economic and environmental justice issues. It claims to be one of Canada’s leading progressive voices in public policy debates.

The study examined the Highway 104 Western Alignment in the province of Nova Scotia and found it cost $232 million more in Canadian dollars (about $175 million in U.S. currency) to build, finance, operate and maintain as a P3 project than it would have as a government-financed, delivered and maintained project. It urged political leaders to return to employing traditional public procurement methods.

Because governments can borrow money at lower rates than the private sector, Majka said, it makes sense for them to finance public infrastructure projects. For example, one reason for the added cost of the 45-kilometer Highway 104 was financing of the project, the report states, because private bonds that were used had interest rates of more than 10% while government bond rates were 5.7%, adding an extra $102 million to the project over 30 years.

(Excerpt) Read more at constructiondive.com ...


TOPICS: Business/Economy; Canada; Government; News/Current Events; US: Georgia
KEYWORDS: bonds; business; canada; cobequidpass; construction; costs; designbuild; disputes; expenses; funding; gdot; georgia; government; highway104; infrastructure; interest; localnews; novascotia; p3s; ppps; safety; tolls; transportation

1 posted on 11/27/2019 2:55:23 PM PST by Tolerance Sucks Rocks
[ Post Reply | Private Reply | View Replies]

To: BobL; sphinx; GreenLanternCorps; Publius; oldvirginian

PING.


2 posted on 11/27/2019 2:56:46 PM PST by Tolerance Sucks Rocks (Show me the people who own the land, the guns and the money, and I'll show you the people in charge.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tolerance Sucks Rocks

In Canada, freeway and highway construction and maintenance are a provincial responsibility.

Every province maintains roads in their jurisdiction.


3 posted on 11/27/2019 3:01:50 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
[ Post Reply | Private Reply | To 1 | View Replies]

To: goldstategop

Who’s responsible for the rock stacking?


4 posted on 11/27/2019 3:06:34 PM PST by ButThreeLeftsDo (MAGA!!!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: All

At first glance I wondered why Canada is using previous gen Sony game consoles for highway projects. You know they can be a bit wacky up there..no offense.


5 posted on 11/27/2019 3:16:14 PM PST by gibsonguy
[ Post Reply | Private Reply | To 4 | View Replies]

To: Tolerance Sucks Rocks
non-partisan research institute focused on social, economic and environmental justice issues

Those things contradict themselves, This "study" is an advocacy group manufacturing data to create fake validity to there pre determined political agenda

6 posted on 11/27/2019 3:37:29 PM PST by MNJohnnie (They would have to abandon leftism to achieve sanity. Freeper Olog-hai)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Tolerance Sucks Rocks
Here in Virginia, P3s have built HOT lanes on I95 and I495 with crazy tolls taking up real estate instead of lanes for all. On I66, one lane is being TAKEN AWAY for the HOT lanes for some Spanish consortium to profit from. At least my motorcycle is always supposed to be free on them. Yeah, great idea these P3s.

Link

7 posted on 11/27/2019 3:41:55 PM PST by mikey_hates_everything
[ Post Reply | Private Reply | To 1 | View Replies]

To: gibsonguy

At first glance I wondered what a P3 Orion had to do with highways. And what a P2 Neptune would have been used for highways before that.


8 posted on 11/27/2019 4:37:31 PM PST by Cold Heart (.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: Cold Heart

9 posted on 11/27/2019 4:56:08 PM PST by blam
[ Post Reply | Private Reply | To 8 | View Replies]

To: mikey_hates_everything

P3s are a wonderful idea. Politicians can get bought off now, and the public pays later.


10 posted on 11/27/2019 5:18:35 PM PST by AndyJackson
[ Post Reply | Private Reply | To 7 | View Replies]

To: Tolerance Sucks Rocks

What does an American Sub Hunter Aircraft have to do with the cost of a Canadian Highway?


11 posted on 11/27/2019 5:37:37 PM PST by Kickass Conservative (Kill a Commie for your Mommy.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: blam

Beat me to it. Lol


12 posted on 11/27/2019 5:38:24 PM PST by Kickass Conservative (Kill a Commie for your Mommy.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Tolerance Sucks Rocks

OK what is a P3? Do the Canucks writing this stuff know it isn’t a common term?


13 posted on 11/27/2019 6:12:00 PM PST by Beagle8U (It's not whether you win or lose, it's how you place the blame.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cold Heart

Hilarious the conclusions you jump to when you half read an odd headline.


14 posted on 11/27/2019 6:21:19 PM PST by gibsonguy
[ Post Reply | Private Reply | To 8 | View Replies]

To: AndyJackson

“P3s are a wonderful idea. Politicians can get bought off now, and the public pays later.”

That’s pretty much DEAD-ON. They sign contracts which are either 49 years, 75 years, or even 99 years. And yet there is absolutely NO NEED for that type of time frame (maybe 10 years to recover the investment (if that), and then 5 years at a time for operations).

Maybe our Great Grandchildren can come up with something better after they expire, but until then everyone in between (meaning us, our children, and usually are grandchildren) are absolutely STUCK with the terms, which are generally horrific.


15 posted on 11/27/2019 6:48:24 PM PST by BobL (I drive a pickup truck to work because it makes me feel like a man.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Beagle8U

Public-Private Partnership — a government venture with a private business or consortium in which the business puts up some of its own money and gets paid back over time, with some profit.


16 posted on 11/27/2019 7:07:56 PM PST by Tolerance Sucks Rocks (Show me the people who own the land, the guns and the money, and I'll show you the people in charge.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: BobL

It’s like reinventing the Rhine Barons all over again.


17 posted on 11/27/2019 7:21:27 PM PST by AndyJackson
[ Post Reply | Private Reply | To 15 | View Replies]

To: Tolerance Sucks Rocks

OK, thanks.


18 posted on 11/27/2019 8:25:15 PM PST by Beagle8U (It's not whether you win or lose, it's how you place the blame.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Kickass Conservative
"Beat me to it. Lol"

Those things used to track us in diesel subs back in the early 60's.

19 posted on 11/27/2019 9:04:58 PM PST by blam
[ Post Reply | Private Reply | To 12 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson