A Government of Alberta P3 contract has the following characteristics;
• The provision or enhancement of capital assets and associated services by a private sector "operator".
• A long term service contract between the public sector body and the operator.
• Annual payments which cover investment, operations, maintenance and/or services.
• The integration of design, building, financing and operation by the operator.
• The allocation of risk to the party best able to manage and price it.
• Service delivery measured against performance standards set out in a performance or output specification.
• A performance related payment mechanism.
Because a P3 is characterized by a long term whole-of-life commitment by the private sector to deliver and maintain new or expanded public infrastructure, it will only be suitable for certain types of investment. The feasibility of any potential P3 must be assessed to ensure that its use is appropriate in the given circumstances.