Public Private Partnership (P3) Innovation

 

The Chamber recognizes that the advent and development of Public Private Partnerships (P3s) is a trend that will bring dramatic change to the manner by which programs services and capital projects are planned, delivered and maintained in our province. Public sector partners can include all levels of government (federal, provincial and local) and their affiliated agencies.  This change is one that we believe should be embraced, but approached with a clear and competent understanding of the advantages and pitfalls.

 

Following restructuring of government services there has arisen significant new opportunities, from the contracted delivery (outsourcing) of government services to full privatization, each with varying degrees of risk.  It is anticipated that legislation will expand the ability for municipalities, local government, schools, health authorities and other agencies to enter into P3 agreements.

 

We believe that private sector participation at the formative stages of a given P3 is integral to the development of effective P3 processes. A core concept is the sharing of information and on-going opportunities to ensure stakeholders have access to accurate information. With its comprehensive new “Capital Management Framework” the provincial government will address the need to provide measurable, non-prescriptive guidelines for LARGE capital projects.  Nonetheless, it is essential that the government address education, public relations or expertise issues outside of its large capital projects, i.e. those projects that will involve small and medium sized businesses and municipalities.  In this spirit we urge the government to update its May 1999 guidebook “Private Public Partnerships, A Guide to Local Government”, expanding it to cover larger projects and most importantly re-inforcing sections on public interaction, longer term public interaction is vital to the success of P3’s in BC.

 

Therefore, we believe that business and government partners should work together to investigate and appropriate manner of addressing education, information issues while considering the opportunity development for P3 projects.  We encourage the development of a body to act as a conduit for information, championing the development of capacity in BC to ensure success for all parties.  Governance, funding and control issues of such a body would be addressed jointly. 

 

Best practice expertise in P3 public interaction, deal structuring, contract development, negotiation and implementation is critical to ensure successful partnerships and deliverables.  The goals should be optimizing opportunity, mitigating risk and reducing transaction costs for each partner while protecting the public interest. We believe that developing capacity, capability and expertise so BC can lead P3 projects at home and abroad should be a primary goal. 

 

THE CHAMBER RECOMMENDS

 

That the provincial government work with The Chamber in partnership with local chambers and the private sector, to champion a P3 forum aimed at meeting the education, best practice, and public relations needs of small and medium sized businesses and municipalities with regard to P3s, other than large capital projects.