PUBLIC PRIVATE PARTNERSHIPS FOR FIRST NATIONS COMMUNITIES

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1 PUBLIC PRIVATE PARTNERSHIPS FOR FIRST NATIONS COMMUNITIES Panel Discussion Moderated By Dale Booth, President Tiree Innovation

2 EXPECTED LEARNING OUTCOMES In today s discussion you will learn about: g A general description of P3 s g The Canadian P3 market g The findings from Recent Studies on P3 s g P3 s on the ground in First Nations communities g Governance structures and options for First Nations How P3 s may be an option for building Infrastructure in First Nations communities

3 TODAY S EXPERT P3 PANEL Mark Romoff, President and CEO of the Canadian Council for Public Private Partnerships (CCPPP) Vijay Gill, Director of Policy research at the Conference Board of Canada Jeff Frank, President of Quilcene Consulting Michael Ledgett, Partner, Dentons Canada LLP Dale Booth, President of Tiree Innovation Inc.

4 WHAT IS A PUBLIC PRIVATE PARTNERSHIP P3s are a long-term performance-based approach for procuring community infrastructure where the private sector assumes a major share of the responsibility in terms of risk and financing for the delivery and the performance of the infrastructure, from design and structural planning, to long-term maintenance. g Integration of roles (Design, Build, Finance, Operate, Maintain) g A long-term duration; (up to 30 years) g The provision of Infrastructure assets to meet a defined output specification (i.e., define what is required rather than how it is to be done); g A transfer of risk to the private sector anchored with private sector capital at risk. g Entered into by a competitive procurement process

5 INFRASTRUCTURE DELIVERY MODEL SPECTRUM g There is a spectrum of infrastructure delivery models ranging from traditional delivery to full privatization. g P3 delivery models in Canada fall in the middle of the spectrum and stop short of full privatization. g Moving left to right on the spectrum below, the role of and risk to the private sector increases in the delivery of an infrastructure project. Design/Bid/ Build Design/Build Typically a combination of Design/ Build AND: Finance and/or Maintain and/or Operate Regulated Utility Completely Private DBF DBOM DBFM DBFOM Entirely Public (Traditional) Public-Private Partnership Degree of Private Sector Responsibility and Risk Entirely Private (Market-based)

6 P3 S IN FIRST NATIONS g Minimum size of project should be $100 million in order to attract the private sector g In the First Nations context, this would require the bundling of several projects g There will be a requirement for Federal Government backing of your project in order to attract the private sector g Private sector would require a designation of the land where the asset will be built to demonstrate First Nations commitment to the project g A strong governance structure recognized by the P3 market is essential

7 BENEFITS OF P3S On-Time & On- Budget Delivery Payment triggered by completion P3s have a proven track record Accountability Performance standards One contractor to deal with Risk transfer Transfer of key risks to the private sector Design, construction, lifecycle maintenance risks Fiscal planning certainty Foreseeable payments over life of asset Cost certainty for up to 30 years

8 BENEFITS OF P3S Focus on Core Responsibilities Enables First Nations to focus on outcomes, instead of inputs. Core competencies of public and private sectors Investment in up front planning Forces a disciplined, detailed planning process Integration Encourages private sector to take a long-term approach Ensures that assets are built to last their life cycle Innovation Greater scope for creativity and innovation design, construction, operations, and maintenance

9 INFRASTRUCTURE CLASSES IN FIRST NATIONS SUITED TO P3 g Water and Wastewater g Schools, Arenas and Band Building g Roads and Bridges g Energy g Broadband g Social Housing