Experience within Alberta has shown that the Alberta P3 model may be most appropriate for capital projects with significant ongoing maintenance requirements. For these projects, the contracting entity can offer project management skills, innovative design and risk management expertise that can bring substantial benefits. Properly implemented, a P3 helps to ensure that desired service levels are maintained, that new services start on time, facilities are completed on budget, and that the assets built are of sufficient quality that will be maintained to a contracted quality over their service life. A P3 ensures that contractors are bound into long-term operational contracts and carry the responsibility for the quality of the work they do2.
The benefits from a P3 are not automatic, but result from a well-planned and rigorously appraised business structure, procurement process and contract administration. The criteria and procedures for identifying and approving P3 projects are set out in this document to ensure that only suitable projects are selected for this process. Extensive planning and document preparation work is required for a successful P3 project.
The GOA has gained experience with P3 methods through the Edmonton and Calgary Ring Road design, build, finance, operate contracts and the design, build, finance, maintain contracts of the Alberta Schools Alternative Procurement projects to build schools in Edmonton, Calgary and surrounding areas.
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2 "Review of Operational PFI and PPP Projects". 4Ps (now Local Partnerships), HM Treasury, UK, 2005 http://www.localpartnerships.org.uk/UserFiles/File/Publications/review_of%20_operational_PFI_PPP_schemes.pdf