Public-private partnerships (P3s)
Provinces and communities are forging partnerships with expert providers who can design, build and operate utility infrastructure for water, wastewater, electricity and natural gas.
These public-private partnerships are delivering results. They have allowed communities to keep local public ownership and regulation of infrastructure, while at the same time providing access to expert external managers and the latest innovations in design, construction and technology. They have also lowered costs and improved service for customers.
In infrastructure projects like water or wastewater treatment plants, a typical P3 model involves the private sector leading the design, construction and operation of the system over a long-term contract for pre-determined annual payments. Contracts are typically 10-20 years. The private sector partner may also finance the project, but the project often remains under public ownership.
Benefits of a public-private partnership
For a community, the primary benefit of a P3 is a guaranteed price, for a guaranteed service level, over a set period of time. Some situations where P3s are a good fit for municipalities include:
- A need to expand infrastructure
- New or emerging regulatory standards
- When debt limits have been reached
- Where funds are required in other core service areas
- Lack of in-house expertise
- Inability to fund initial studies
- Projects needing completion on short timelines
EPCOR has experience with successful public-private partnerships.
Contact us to discuss this option.