This Guest paper originally appeared in the November/December 2005 issue of the Taxpayer, a regular publication of The Canadian Taxpayers Federation (CTF), a federally incorporated non-profit and non-partisan organization dedicated to lower taxes, less waste and accountable government. This article is reproduced with permission and is copyright to the CTF and Sara MacIntyre © 2005.
Published here April 2006.

Editor's Note | Introduction | Design-Build-Finance-Operate
Capital Projects: What's Good, What's Bad? | Why Now? | Where is Canada on P3s?
Case Example: Abbotsford Regional Hospital and Cancer Centre

Why Now?

Public-private partnerships are increasingly gaining currency as international evidence demonstrates their success. Moreover, private expertise is growing, demands for infrastructure investment continue and private capital markets look to diversify. Not that the Canada Pension Plan is a great example to look towards, but even the CPP Investment Board (CPPIB) has recognized the long term returns of "infrastructure funds." Just this past year, the CPPIB announced it would be expanding its infrastructure investment funds by $470 million. The two funds that the Investment Board has invested in are leaders in public private partnership financing. P3's are also providing pension plans with a long-term, stable investment option.

Countries all over the world are trying to satisfy infrastructure demands while at the same time remain fiscally responsible with a competitive tax regime. Deficits and debt financing are long recognized as crippling for tying up precious tax dollars. The UK is a leader in P3s as is New Zealand, Ireland and Australia. Other P3 supporters include Italy, Chile, Spain, Sweden, South Africa, the US and Brazil. Recently, Singapore announced plans to move forward with a P3 program that includes a water treatment system, an incineration plant, university student housing and IT infrastructure.

Capital Projects: What's Good, What's Bad?  Capital Projects: What's Good, What's Bad?

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