Canadian schools to be built in PPP pilot

Eighteen Canadian schools are to be built under a public–private partnership (PPP) project over the next three years.

Three potential private partners have been invited to submit proposals for the construction and maintenance of the schools in the Canadian province of Alberta.

The final contract should be awarded mid-year. The successful partners would be responsible for the design, construction, finance and maintenance of the schools for 30 years.

Once the schools are open, government will make regular payments for 30 years.

"This is an efficient and innovative way to build schools," associate minister of capital planning Gene Zwozdesky said in a statement.

"It gives us a fixed price with cost certainty, earlier completion dates, long-term maintenance of major capital items (roofs, boilers, etc), and gives school boards immediate ownership."

The schools would be owned and run by school boards.

The advantages of using PPPs for the Albertan government included that:

• schools could be built and in service earlier
• government was guaranteed a fixed price and delivery date for the schools
• risks such as inflation in construction cost and weather-related delays were borne by the contractor
• the work came with a 30-year warranty.

Further information is at this web page and this web page.