Mandatory P3s. Coming soon to a municipality near you?

Continuing on our P3 and infrastructure discussions, an unreported part of the 2007 federal budget. The conservatives announced the establishment of a “new federal office to identify and implement opportunities for public-private partnerships in infrastructure”. They then go on to say that

In the case of large projects seeking funding from the Building Canada Fund and the national fund for gateways and border crossings, proponents will also be required to demonstrate that the option of undertaking the project as a public-private partnership has been fully considered.

One wonders whether only considering the option will be enough to receive needed grant dollars. Also funny how the feds are willing to subsidize up to 25% of P3 projects — talk about bad incentives. It seems Flaherty has picked up where he’s left off in the move towards infrastructure privatization.

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One thought on “Mandatory P3s. Coming soon to a municipality near you?

  1. Combine this with the incentive for provincial governments to move in the direction of user fees(owing to the the equalization formula) instead of income taxes and you have a nice little set of incentives.

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