PPP framework

PPP projects in Canada were carried out mainly at three levels: federal, provincial/territorial and municipal. The provider of PPP projects in Canada can be Her Majesty the Queen in the right of Canada, Royal (federal) agency, the provincial / territorial or provincial agency (or office), or a municipality.

Legal system and structure

At the federal level and in every province in Canada there is a tradition of common law (owned by the UK), although Quebec also has a civil right.

PPP was developed in Canada through in evolutional way and due to the concept laid down in Canadian law on strategic infrastructure fund (2002, r 9, p. 47), which provides the "repayment" of fees to the appropriate recipients for conducting of major strategic infrastructure projects that contribute to the economic growth and raise the living standards in Canada, and that advance Canada"s objectives in terms of infrastructure"(section 3 (1)) and points (in section 3 (2)) that " The Fund, when it is appropriate, will facilitate the use of partnerships between public and private institutions."

The municipality may conclude a contract with third parties on the operation of its waterworks, water treatment systems, sewer systems or other water supply systems for up to 25 years. The law of Canada on strategic infrastructure fund, according to which the fund agrees to promote the use of partnerships between public and private agencies in appropriate circumstances, the law of the agreements on partnerships in the health sector (BC), which is applied if the partner of the health sector enters into an agreement with a partner from the private sector.

Budget rules

Most municipal authorities cannot enter the contracts with commitments on expenditures for a period exceeding five years without punishment from voters through a referendum conduction. However, this leaves no opportunity for municipal PPPs, which should not require the governing body to make payments for operational availability. This is the main reason why the Canada PPP fund was recently established in the amount of 1.2 billion Canadian dollars, the program is based on quality in order to support infrastructure PPP projects, develop the Canadian PPP market and create significant public benefits

Implementation of the project and the contracting process

Each level of government uses various affiliated companies for the provision of public services, except the direct provision of such services. Each province is responsible for planning and implementing its own budget.

PPP in the broad sense were used by different levels of government and some businesses for a wide range of small and medium-sized projects. However, large capital projects that include long-term, privately financed concessions, were mostly conducted in four provinces: British Columbia ("BC"), Alberta, Ontario and Quebec. The Government of Canada announced about the formation of «PPP Canada Inc.»("PPP Canada") in the 2009 budget. «PPP Canada» is a PPP office of the federal government, and its purpose is to encourage the further development of the PPP market in Canada. «PPP Canada» will carry out the management of the public and private partnerships, national infrastructure program, introduced as a part of Budget 2007.

Typical life cycle of PPP:

1. Request for Expression of Interest

2. Request for qualifications (RFQ)

3. Request for Proposals (RFP)

4. Long-term contract