1. P3s & The P3 Canada Fund Michael Mills VP Investments, PPP Canada
CNAM 2014 Conference
Toronto, Ontario
May 20-23, 2014

2. About PPP Canada The Government of Canada’s centre of P3 expertise
A federal Crown corporation
Reporting to Parliament through the Minister of Finance
Led by an accomplished private sector-based Board of Directors

3. Our Objectives
Deliver P3s that provide greater value to Canadians -- through better timeliness, better accountability, and greater innovation;
Ensure that these projects stimulate and expand the Canadian market for P3s; and
Provide expert advice and information on P3 best practices and the Canadian P3 market.

4. Our Core Business
Developing & sharing knowledge, tools, and best practices - Developing high-quality knowledge products to support a pipeline of consistent P3 procurements in the Canadian market;
Advancing federal P3s - $100 million Federal Screen, Procurement options analyses and procurement; and
Advancing provincial, territorial, municipal, and First Nations P3s - the P3 Canada Fund, the New Building Canada Fund P3 Screen, Tool and resource development; and P3 education and awareness.

5. Definition of a P3?
A long-term performance-based approach for procuring public infrastructure where:
The private sector assumes much of the risk and financing responsibility for the delivery and performance an asset
Spans design and structural planning to long- term maintenance.

6. Features of a P3
Integration of roles (Design, Build, Finance, Operate, Maintain)
A long-term contract duration
The provision of goods or services to meet a defined output specification (the “what” vs. the “how”)
A transfer of risk to the private sector anchored with private sector capital at risk
Entered into by a competitive process

7. On-time, on-budget delivery Fiscal planning certainty
Benefits of P3s
On-time, on-budget delivery
Accountability
Risk transfer
Fiscal planning certainty

8. Benefits of P3s Focus on outcomes, core business
Investment in upfront planning
Integration of project components
Innovation

9. Value for Money P3 Value Drivers
Allocating risks to the party best able to manage them (i.e. lower project risk)
Innovations (i.e. lower capital and operating costs)
Higher quality assets and better performance

10. Value for Money P3 Best Practice
Evaluation of different procurement options
Examine quantitative and qualitative factors and choose best value
Consider whole-of-life costs: design, construction, operation and maintenance costs over the lifecycle of the asset
Consider retained and transferred risks

11. Value for Money
11.8% VfM

12. Value for Money Why Conduct a VFM Assessment? Screening tool
Decision support tool
Authorization to proceed as a P3
Disclosure and transparency

13. Canada is recognized as a Leader in P3s
Value for Money
Specialized P3 Agencies and Units
Open Competition
Robust Capital Markets
Continuous Learning
Projects at every level of government
206 projects initiated since 1991, providing a total project value of over $63 billion
52% of these projects are operational, 26% are under construction and 22% are in the procurement stage (Source: CCPPP database)

14. Working with the Federal Government
Completed or under construction
- RCMP E Division
- CSEC Accommodation Project
In procurement
- New Bridge over the St. Lawrence
Future Pipeline includes:
- Detroit River International Crossing
- Shared Services Data Centre  

15. The P3 Canada Fund
$1.2B Fund to support adoption of P3s by Provinces, Territories, Municipalities and First Nations
Up to 25% of eligible costs, through repayable contributions, non-repayable contributions, loans and loan guarantees
Focused on building experience, innovative applications of the P3 model

16. The P3 Canada Fund Merit Criteria P3 viability
Private sector involvement & risk transfer  DBFOMs
Revenue potential
P3 market development potential
Project readiness
Applicant capacity

17. The P3 Canada Fund Priority Categories Water and wastewater
Public transit
National Highway System
Solid waste management
Local roads
Regional and local airports

18. The P3 Canada Fund Eligible Applicants Provinces / territories
Municipal or regional governments
On-reserve or on-Crown land First Nations
Public sector bodies under provincial/territorial statute or wholly owned by a province, territory, or municpality

19. Chief Peguis Trail Extension
Winnipeg, MB
$25M non-repayable contribution
DBFM
$31M in savings over traditional procurement

20. Evan Thomas Water / Wastewater
Kananaskis Country, AB
$9.95M non-repayable contribution
DBFOM
$24.1M in savings over traditional procurement

21. Downtown Eastside Housing Renewal Project
Vancouver, BC
$29.1M non-repayable contribution
DBFM
$5.2M in savings over traditional procurement

22. Results from Original $1.2 billion
Over $6.0 billion in capital investment – 5:1 leverage
16 jurisdictions employing P3 for first time
Mix of small, medium and large projects
15 different municipalities
7 water/wastewater projects
7 public transit projects
First rehabilitation project
Accelerating momentum – over $1 billion committed in Rounds 3-5

23. P3s and the New Building Canada Fund
All applications to the Building Canada Fund with eligible costs of $100M or more are subject to a new P3 Screen
PPP Canada has been mandated to manage the two part P3 Screen in collaboration with Infrastructure Canada

24. P3s and the Building Canada Fund
Suitability Assessment
- A screening matrix asks the user to consider 12 questions and enter a score for each question.
Procurement Options Analysis
- Applied to projects that screen positive for P3 viability

25. Questions? Contact Me: Michael Mills VP Investments, PPP Canada