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Public Private Partnerships (PPP)

Increasingly cash strapped municipalities are looking to Public Private Partnerships as a way of providing and operating needed infrastructure.  While selling PPPs to the public is often a challenge, PPPs can be highly beneficial to the taxpayer and public if they are well designed and implemented.

 

Municipalities, which are not typically in the business of running businesses (and PPPs are businesses) are often at a disadvantage when dealing with the private sector partner and selling their vision to the public.  LAC & Associates can help you better understand the risks  associated with PPPs, help you to structure your PPP to maximize the benefit to the public, help you negotiate with your private sector partners to ensure the agreement is fair for both sides and can work with your communications staff in developing a clear communications strategy around PPPs.

 

There are both good and bad PPPs and LAC & Associates can help to ensure your PPP is one that works for everyone’s benefit.   


 LAC & Associates Presentation at a Professional Engineers of Ontario (Ottawa Chapter) event on Infrastructure Financing


Some Basic Rules for Public Private Partnerships for the Government Partner


  • Always know how much it would cost to implement a project in a traditional manner with full government ownership
  • Determine what you need from the PPP partners and structure accordingly. This can include financing, construction, operation, ongoing maintenance, etc.
  • A PPP is similar to other types of government procurement.  The selection of the private sector partner should always be tendered.
  • Compare best bid with cost of doing the project without the private sector and determine if the benefits are sufficient
  • The public must understand the risks and benefits if they are to be on board
  • Be prepared to walk away