In 2007, The City retained Deloitte as consultants to provide expert advice regarding the approach toward P3s. In November, the consultants delivered presentations to City management giving a broad overview of P3s. Subsequently, Deloitte prepared a draft P3 policy framework.
This policy has evolved from expert advice regarding the approach toward P3s provided by Deloitte and involved representatives from various business units and the Mayor's Office. The policy is based on the following guiding principles adopted by Council in September 2008:
1. The public interest is paramount
2. Appropriate public control must be preserved
3. Accountability must be maintained
4. The project must be a priority as determined by the capital plan.
5. The project must be approved within both the capital plan and the projected operating budget of the relevant business unit.
6. The P3 procurement process must be competitive, equitable, transparent, accountable and timely.
7. The selected P3 delivery model must provide best value for money over the project lifecycle with appropriate consideration of risk transfer, opportunities for innovation, and community issues.
Although there is no common definition of a P3, The City has adopted the following definition for P3s for the purpose of the P3 policy and evaluation framework:
A Public-Private Partnership is a contractual agreement between a public authority and a private entity for the provision of infrastructure and/or services in which:
i. The private sector participant assumes the responsibility for financing part or all of the project; and/or
ii. The City seeks to transfer risks that it would normally assume, based on the private sector participant's ability to better manage those risks; and/or
ii. The arrangement extends beyond the initial capital construction of the project.
A more detailed analysis of P3s can be found is Schedule 1. Some examples of P3s in Calgary and other municipalities can be found in Schedule 2.