Comments on: Victoria’s billion dollar P3 decision

By: Keith Reynolds

Keith Reynolds — Thu, 01 Apr 2010 16:45:14 +0000

The Capital Regional District made its decision on procurement options for the sewage project on March 31. From their press release:
“The business case includes procurement for facilities at McLoughlin Point, Clover Point, Saanich East, an energy centre, conveyance, pumps and outfalls using a traditional approach (design-bid-build, design-build or construction management at risk). The West Shore plant and resource recovery components of the energy centre will be procured using either traditional or an alternative service delivery (design-build-finance-operate or design-build-operate), otherwise known as a P3 approach.”

Is that the end of it? Not really. Minister of Community and Rural Development Bill Bennett wrote the Times Colonist this week saying, “I’m waiting for the final report from the Capital Regional District board and, once we have it, Partnerships B.C. will take a look at the procurement options and decide if a P3 makes sense, as part of the province’s capital standard requirements.”

It is possible the province will ignore the CRD decision and try to force them to use a P3. No surprise here.

By: Bernadette Keenan

Bernadette Keenan — Mon, 29 Mar 2010 03:56:55 +0000

$700 million that they need the HST to pay for, as well as the Olympics and all those pavement projects.

By: Keith Reynolds

Keith Reynolds — Sat, 27 Mar 2010 14:50:52 +0000

Last Wednesday the CRD Committee responsible for the project voted to procure the large part of the project publicly. Staff recommended two smaller parts be procured with a P3. This was amended to allow the possibility of traditional procurement for these two smaller parts. The CRD will vote on the Committee recommendation next Wednesday.

By: Iglika Ivanova

Iglika Ivanova — Wed, 17 Mar 2010 20:59:04 +0000

Thanks for the excellent summary of the case, Keith.

I participated in one of the stakeholder consultations in Victoria and I have to say that I was really encouraged by the level of public engagement sought and the openness of the project. What struck me was that the “hybrid” option, which is sold as the middle ground, seemed to be designed not based on cost or efficiency considerations but based on political expediency. The way the consultant explained it, some municipality mayors were keen on the P3 idea, so the facilities in their area were proposed as P3s, while the facilities in the other areas were left to traditional procurement because of less “entrepreneurial” mayors (that’s the word the consultant used). Hmmm.