Public-private partnerships could address infrastructure shortfall: panel

TORONTO, ON-Provincial Ministers from across Canada taking part in a panel discussion on infrastructire are suggesting that public-private partnerships may have to address current and future shortfalls.

The panel group, attending the 13th Annual Conference of the Canadian Council for Public-Private Partnerships, (“Canada’s Missing Infrastructure: The Role of P3s in Bridging the Gap”), reviewed infrastructure projects everything from roads to rapid-transit systems that, if developed, could improve Canada’s competitiveness abroad and provide significant benefits at home.

Infrastructure projects built using traditional financing often require governments to borrow. But in the last two decades, governments have come under pressure to cut costs, pay down their massive accumulated debts, and reduce or eliminate annual operating deficits. The result has been a reduction in much-needed investment and reinvestment in our public infrastructure the “missing infrastructure.”

“Canada’s missing infrastructure is a very serious problem,” said Council Chair Michael Wilson. “Some estimates put the total figure at $130 billion or even higher. One recent estimate suggests that the missing infrastructure in Ontario alone may be over $100 billion. The country’s inadequate highways, border infrastructure, and public transit have hurt Canada’s competitiveness.”

In 1962, Canadian governments devoted $22 of every $100 they spent to these vital public infrastructure assets. But by 2002, that proportion had fallen to only $12, found the panel.

P3s deliver the “best bang for the buck” by mobilizing the competitive, creative energy of the private sector, suggested the Council.

“Whether it is Vancouver’s Pacific Gateway project, Halifax’s Port expansion or Ontario’s mid-Niagara highway, investing in Canada’s infrastructure is crucial, not only for the future of these communities but also for the prosperity of the whole country,” added Wilson.

“And public-private partnerships can get much of the work done now and done correctly without putting a bigger burden on debt-ridden governments.”