The key components of the business case are the consideration of life cycle costs and risks that are borne by the public sector (Public Sector Comparator) relative to the project costs when risks are transferred to the private sector (Shadow Bid). This comparison of value for money together with consideration of project risks and public sector impacts form the basis for approval of a P3 project.
When the business case demonstrates that approved projects have P3 potential, the completed detailed business case and lifecycle cost assessment is submitted to the Deputy Ministers' Capital Planning Committee (DMCPC) for review. If the review is positive, DMCPC will recommend approval of P3 procurement for the project to Treasury Board.
Treasury Board refers all P3 proposals to the Advisory Committee on Alternative Capital Financing (ACACF) which provides independent, expert assessment of all alternatively financed capital proposals. The President of Treasury Board may also refer the proposal to the Treasury Board Capital Planning Committee (TBCPC) for comment on the strategic implications of P3 procurement of the project.
Treasury Board will review the submission and the comments provided by the DMCPC, the ACACF and the TBCPC. Based on its review of the materials and comments provided, Treasury Board has the discretion to:
■ Approve the business case, risk profile and funding envelope;
■ Authorize entering into an agreement for completion of the project; and
■ Require the ministries/SIO to submit reports to Treasury Board.
The Terms of Reference for the Treasury Board Capital Planning Committee, the Deputy Ministers' Capital Planning Committee and the Advisory Committee on Alternative Capital Financing may be found in Appendices C.1, C.3 and C.5