Advisory Committee on Alternative Capital Financing
A committee of appointed private sector individuals appointed by the President of the Treasury Board to provide advice on the feasibility and cost-effectiveness of alternative financing proposals including Public-Private Partnerships (P3s).
Alternative Capital Financing Office
The unit within the Ministry of Treasury Board responsible for identifying and analyzing potential P3 opportunities and other alternative capital financing proposals.
Alternative Financing includes private financing through P3 contractual arrangements and financing arranged for capital project development by the Government of Alberta (GOA) or by Supported Infrastructure Organizations (SIO). Alternative funding can take different forms and could include P3s, capital leases, capital bonds and other borrowing but excludes direct government borrowing not raised specifically for an identified project or asset.
The current approved capital expenditure plan that has been approved by the Treasury Board documenting projects approved to commence in the next three years and the accompanying cash flow requirements necessary to complete each project.
Cross Ministry Projects are projects affecting more than 1 ministry and include projects for Supported Infrastructure Organizations such as Alberta Health Services, post-secondary institutions and school boards.
Deputy Ministers' Capital Planning Committee
The Deputy Ministers' Capital Planning Committee (DMCPC) is a committee established by the Government of Alberta with responsibilities to oversee GOA capital planning and to advise the Treasury Board on matters related to capital projects, capital programs, capital plans, and capital planning strategies for government owned and supported infrastructure. (See Appendix C for Terms of Reference).
Deputy Ministers' Oversight Committee
The Deputy Ministers' Oversight Committee (DMOC) is chaired by the Deputy Minister, Treasury Board and includes at least 2 additional Deputy Ministers. DMOC provides high-level oversight of the delivery of significant capital projects, including all approved and potential projects delivered under a P3 model.
The current value of a future sum of money. It is a standard method to compare the value of money over time (a dollar today is worth more than a dollar tomorrow because of interest and inflation) to assess long-term projects. It is produced by applying an interest rate and an inflation rate (collectively called the "discount rate") to a future sum.
The proponent team that is notified by the Service Delivery Ministry that it has been selected as the successful bidder in a P3 procurement and will be required to enter in the Project Agreement with the Province as a result of the Request for Proposals process.
The ministry (or ministries) responsible for the program for which the infrastructure is being delivered.
The agreement into which the Program Ministries with the Service Delivery Ministries and the Preferred Proponent will enter into for the project.
The Project Manager is the individual responsible for delivering the project in accordance with the scope, budget, timelines and guidelines established by the Assistant Deputy Ministers' Project Review Committee.
Public-Private Partnerships (P3)
A cooperative venture based on contractual obligations between one or more public/private/not for profit partners that meets clearly defined public needs for the provision of infrastructure through appropriate allocation of resources, risks and rewards.1 The term can be used to describe a wide variety of working arrangements from loose, informal and strategic partnerships to design build finance and operate/maintain (DBFO/M) type contracts and formal joint venture companies.2
For the purposes of Government of Alberta capital projects, a Public Private Partnership (P3) is defined as a form of procurement for the provision of capital assets and associated long term operations that includes a component of private finance. Payment to the contractor is performance based.
Public Sector Comparator (PSC)
An estimate of the hypothetical risk adjusted cost (using net present value), if a project were to be financed, owned and implemented by government (i.e. the full and true cost to government for meeting the output specification under a Traditional Procurement delivery method). The PSC is used in the Value for Money assessment.
The ministry that leads the infrastructure procurement process. For P3s, the Service Delivery Ministries are Infrastructure, Transportation or Service Alberta.
An estimate of the hypothetical risk adjusted cost (using net present value), if a project were to be financed, owned and implemented as a P3. The Shadow Bid is used in the Value for Money assessment.
Single Ministry Projects are projects where 1 ministry is the Program Ministry and Service Delivery Ministry and the results of that project affect only that 1 ministry.
Supported Infrastructure Organization (SIO)
Include school boards, Alberta Health Services, post secondary institutions and any other boards and agencies that are eligible for GOA capital and operating budget support. Supported agencies do not include municipalities and other levels of government.
The project ownership, management and procurement process that is normally employed by the ministry or SIO in accordance with their existing procurement practices. This is generally a design/bid/build process for developing infrastructure using private sector consultants and contractors. The process must have been successfully used to own, manage and deliver this type of infrastructure in the province and is a practical, not theoretical, approach.
A legislated committeewith a role, as set out in the Financial Administration Act, to "formulate general management policies relating to the business and affairs of the Crown and Provincial agencies, and do any acts it considers necessary to ensure that those policies are carried out."3
Treasury Board Capital Planning Committee (TBCPC)
A committee established by Treasury Board Committee to provide Treasury Board Committee with advice and make recommendations related to the Alberta Capital Plan and capital expenditures, including the alternative procurement of capital projects (which may include alternative financing).
A quantitative comparison of the project lifecycle costs under a P3 and Traditional Procurement approach. The quantitative assessment includes the impact of risk transfer.
Value for Money Assessment and Project Report
A publicly issued report demonstrating how Value for Money is achieved on a P3 project.
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1 The Canadian Council for Public-Private Partnerships. http://pppcouncil.ca/resources/about-ppp/definitions.html
2 Local Partnerships (Public private partnership program). HM Treasury, UK Treasury Board (Committee)
3 Financial Administration Act, Section 5(1)