November 12, 2008

Province of British Columbia increases threshold for P3 capital projects to $50 million

The province announced on November 7, 2008 that it has increased the threshold for any provincially-funded capital project to be considered as a public-private partnership.

All provincially-funded capital projects with a value of $50 million or more will be considered first by Partnerships BC to be built as public-private partnerships (PPPs) unless there is a compelling reason to do otherwise. Previously the threshold for consideration as a PPP was $20 million.

Since the introduction of the capital standard policy, all projects recommended to be a PPP have been over $100 million with the exception of one, and none have been below $20 million.

Raising the threshold to this level will ensure that larger projects continue to be considered as potential PPPs, while streamlining the process for smaller-value projects that would not likely be a good fit as PPPs.

Projects between $20 million and $50 million will still be screened to determine whether a more comprehensive assessment of the project as a PPP is warranted. However, it is expected that typically such an assessment will not be needed, thus streamlining the planning process for smaller projects. Most projects receiving provincial funding over $50 million will continue to require preparation of a full business case before project approval.

To date, public-private partnerships have resulted in significant benefits for taxpayers, including $131 million in additional benefits on the Sea-to-Sky Highway, $92 million in benefits for the new Canada Line, $39 million in benefits on the Abbotsford Hospital and Cancer Centre, and $25 million in benefits from the new William R. Bennett Bridge.

Every project undertaken as a PPP in British Columbia has been completed on-time and on-budget.

– RCD Digital Media

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