TORONTO, March 13, 2014 /CNW/ - Public-private partnerships (P3s) are major contributors to Canada's economy, generating $51.2 billion in direct economic output and 290,680 direct full-time equivalent jobs between 2003 and 2012.
According to an economic impact study conducted by InterVISTAS, a leading management consulting company, P3s play a major role in boosting Canada's economy. The report notes: "With the public sector facing aging infrastructure, population growth and budget constraints, P3s are bringing together the expertise of both the private and public sector to expand the number and scale of infrastructure investments for public benefit."
Based on a review of public-private partnerships in operation or under construction from 2003-2012, the report highlights the following cumulative economic impacts over the 10 years:
- 517,430 total full-time equivalent (FTE) jobs, including 290,680 direct FTE jobs
- $32.2 billion in total income/wages and benefits, including $19 billion in direct income/wages and benefits
- $48.2 billion in total gross domestic product (GDP), including $25.1 billion in direct GDP
- $92.1 billion in total economic output, including $51.2 billion in direct economic output
- $9.9 billion in cost savings
- $7.5 billion in tax revenue to government
"The numbers clearly demonstrate the incredible value public-private partnerships provide. These projects lift Canada's GDP and ultimately help drive our global competitiveness," said Mark Romoff, President and CEO of The Canadian Council for Public-Private Partnerships. "P3s are providing tangible benefits to Canadians and have put us on the map as 'best in class' internationally."
Canada's Minister of Finance, The Hon. Jim Flaherty, also recognized the value that P3s generate: "Public-private partnerships are an innovative way of getting infrastructure built on time and on budget. That's why our Government renewed the $1.25 billion P3 Canada Fund to build infrastructure projects through P3s and implemented a mandatory P3 Screen for projects above $100 million as part of our historic infrastructure plan, the new Building Canada Plan. We applaud the Canadian Council for Public-Private Partnerships for its work in promoting P3s."
Public-private partnerships began in Canada in the early 1990s and there are now 206 projects; those under construction or in operation are worth more than $63 billion. They are building critical infrastructure across a wide range of sectors, including bridges, roads, urban transit, hospitals, airports, schools, social housing, courthouses, detention centres, and water and wastewater systems.
The InterVISTAS findings support the substantial contribution of P3s to Canada's competitiveness. "Major new investments in Canada's infrastructure are urgently needed for our competitiveness," stressed The Hon. Perrin Beatty, President & Chief Executive Officer, The Canadian Chamber of Commerce. "This report shows the important role that public-private partnerships can play at a time when government finances at all levels are seriously strained."
Joseph Mancinelli, LiUNA International Vice President, Central & Eastern Canada Regional Manager and Chair, Labourers' Pension Fund of Central and Eastern Canada, emphasized the P3 contribution to our economy and employment in Canada. He added: "It's not every day that clear solutions are found to fund infrastructure projects. Public-private partnerships provide a win-win solution for solving our infrastructure deficit and provide immediate and sustainable economic growth."
A backgrounder, executive summary and copy of the full report are available on the CCPPP website at: www.pppcouncil.ca/p3impact.
About The Canadian Council for Public-Private Partnerships: Established in 1993, CCPPP is a national not-for-profit, non-partisan, member-based organization with broad representation from across the public and private sectors. Its mission is to promote innovative approaches to infrastructure development and service delivery through public-private partnerships with all levels of government. The Council is a proponent of evidence-based public policy in support of P3s, facilitates the adoption of international best practices, and educates stakeholders and the community on the economic and social benefits of public-private partnerships.
About InterVISTAS: InterVISTAS Consulting Group is a leading management consulting company with extensive expertise in infrastructure, transportation finance and tourism. It has successfully delivered projects in over 70 countries around the world and undertakes major studies in transportation planning and economics.
Image with caption: "Established in 1993, CCPPP is a national not-for-profit non-partisan, member-based organization with broad representation from across the public and private sectors. Its mission is to promote innovative approaches to infrastructure development and service delivery through public-private partnerships with all levels of government. (CNW Group/Canadian Council for Public-Private Partnerships)". Image available at: http://photos.newswire.ca/images/download/20140313_C4912_PHOTO_EN_37881.jpg
SOURCE: Canadian Council for Public-Private Partnerships
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