Canadian Manufacturing

Public-private partnerships provide big boost to Canadian economy

by Canadian Manufacturing Daily Staff   

Canadian Manufacturing
Procurement Public Sector Economy politics Public procurement

Champlain Bridge

Transport Canada said it’s ready to open bidding for a new public-private bridge spanning the St. Lawrence River in Quebec to replace the aging Champlain Bridge. PHOTO Martin Dubé

TORONTO—Infrastructure partnerships between government and private industry in Canada provide billions of dollars in economic benefits that reach far beyond the projects themselves, according to a new study.

Released by the Canadian Council for Public-Private Partnerships (CCPPP), the study claims public-private partnerships (P3s) generated $92.1-billion in economic output between 2003 and 2012 and $9.9-billion in cost savings.

The study was conducted by InterVISTAS Consulting, Inc. for the CCPPP.

“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,” the report reads.


The study also claims such joint ventures between government and private industry created more than 517,000 total full-time equivalent jobs over the time studied, including 290,680 direct jobs, which led to $32.2-billion in total wages and benefits.

Of that number, $19-billion was direct wages and benefits, according to the study.

The projects also generated $48.2-billion in total gross domestic product (GDP), including $25.1 billion in direct GDP, and $7.5-billion in government tax revenue.

Of that tax collected, $5.18-million went into federal coffers, while the remaining $2.33-million was collected by provincial governments across the country.

“The numbers clearly demonstrate the incredible value public-private partnerships provide,” CCPPP president and chief executive Mark Romoff said in a statement about the report. “These projects lift Canada’s GDP and ultimately help drive our global competitiveness.”

Since 1991, 206 P3 projects have been undertaken in Canada, according to the CCPPP, with a total value of $63-billion.

The study analyzed the economic impacts of 121 P3 projects, including 59 hospitals and healthcare centres and 24 transportation projects.

Ontario was home to the majority of the projects examined with 65, followed British Columbia with 23.

The remaining projects were split between Alberta, Manitoba, Quebec and New Brunswick.


Stories continue below