Analysis by other jurisdictions4 has shown that the Alberta P3 model is most appropriate for major and complex capital projects with significant ongoing maintenance requirements. For these projects, the contracting entity (Service Provider) 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 and facilities are completed on budget, and that the assets built are of sufficient quality to remain high standard throughout their life. A P3 ensures that Service Providers are bound into long-term operational contracts and carry the responsibility for the quality of the work they do5.
The benefits from a P3 are not automatic but they only result from well-planned and rigorously appraised schemes. 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.
The Government has gained experience with P3 methods through the Calgary Courts, a design, build, operate contract and Edmonton/Calgary Ring Road projects, design, build, finance, operate contracts.
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4 "PFI: Meeting the Investment Challenge". HM Treasury, UK government, July 2003
5 "Review of Operational PFI and PPP Projects". 4ps, UK government. 2005