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Old 10-21-2010, 10:48 PM   #170
FlameOn
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Quote:
Originally Posted by Muta View Post
Possibly, but for the most part it's a way for a government to address immediate infrastructure projects with no (or little) upfront costs. Infrastructure Ontario is pretty much only doing P3's these days, and I don't think they would be doing them if they were losing money. I've worked on three P3 projects there already this year.
I got it wrong, it wasn't other provinces. It was Australia and New Zealand that were having P3 disasters a few years back. They released a report on this.

Quote:
A common problem with PPP projects is that private investors obtained a rate of return that was higher than the government’s bond rate, even though most or all of the income risk associated with the project was borne by the public sector.
In 2009, the Treasury of New Zealand, in response to inquiries by the new National Party government, released a report on PPP schemes that concluded that "there is little reliable empirical evidence about the costs and benefits of PPPs" and that there "are other ways of obtaining private sector finance", as well as that "the advantages of PPPs must be weighed against the contractural complexities and rigidities they entail"
http://en.wikipedia.org/wiki/Public%...te_partnership
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