Canada

Maude Brunet, Nathalie Drouin, Leonard Mwesigwa and Matti Siemiatycki

Chapter 4 in Handbook on Public–Private Partnerships in International Infrastructure Development, 2024, pp 86-108 from Edward Elgar Publishing

Abstract: Public-private partnerships (PPPs) have a substantial history in Canada, evolving into a standard policy tool for governments to deliver large public infrastructure since the early 1990s. This chapter delves into the historical trajectory of PPPs in Canada, highlighting the primary motives and factors that fuelled their widespread adoption and promotion during this period. It then explores the reasons behind the recent decline in PPP popularity and offers insights into the future landscape of PPPs in Canada post the COVID-19 pandemic. The analysis shows that support for the PPP model began to wane as numerous large civil infrastructure PPPs encountered significant challenges, including cost overruns, delays, legal disputes, corporate bankruptcies, and tensions between the partners. The analysis underscores the challenges with the risk transfer protocols in PPPs that in some instances have left firms with major financial liabilities, and in others positioned the government assuming the role of the risk holder of last resort. Consequently, there is a renewed emphasis on exploring alternative procurement models, such as alliance contracting, that prioritize risk and reward-sharing over unilateral transfer, acknowledging the complexities associated with unforeseen events. The construction of the new Samuel De Champlain Bridge in Montreal, Canada, is the case discussed. This bridge is a key economic structure for the Montreal region (Quebec, Canada), for the transport of goods and the mobility of people between the South Shore suburbs of Montreal, the city centre and the North Shore suburbs. In this chapter, our intent is to illustrate a case study that can be qualified as a successful PPP for two main reasons. First, engineering innovations were achieved through an accelerated construction approach to building the new Samuel De Champlain Bridge. Second, sustainability concerns were considered during the PPP delivery model based on clear guidelines by the government of Canada, which greatly facilitated its execution.

Keywords: Business and Management; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
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