About | About P3s

What is a Public-Private Partnership?

The Government of Alberta defines a public-private partnership (P3) as an infrastructure project in which a private contractor:

• provides some or all of the financing for the project;
• designs and builds the project, often providing operations and maintenance for the project, and often backed by an “extended warranty”; and
• receives payments from the government over an extended period of time, subject to deductions for failing to meet contractually defined performance standards.

Why was a P3 selected for this project?

For each project, the Government of Alberta looks at the best way to deliver the best product to meet Albertans’ needs. In the case of the Alberta Schools Alternative Procurement (ASAP) Phase II schools, the government’s analysis determined that the best way to efficiently and cost-effectively deliver a large number of much needed new schools was through a P3 approach.

What are the advantages of using a P3 to provide the ASAP schools?

There are a number of benefits to using a P3 approach for building these 10 schools including:

Economies of Scale

• one contractor is responsible for building all schools
• a fixed construction price is guaranteed
• the school delivery (completion) date is guaranteed
• risks are transferred to the contractor after tender (examples include inflation in construction costs, and weather-related delays)

Value to taxpayers

Through this P3 approach, the 10 new ASAP schools will be provided at a savings of $105 million to Alberta taxpayers. In addition, the P3 schools will not require government funding for infrastructure maintenance and renewal as these costs are built into the contract.

Schools completed faster

10 new schools will open in communities with high-priority school infrastructure needs two years sooner than if traditional construction methods were used.

30 year maintenance warranty

A key benefit of the made-in-Alberta ASAP P3 is the 30 year maintenance warranty which ensures students and communities will have a school that is guaranteed to be in good condition 30 years after it opens.