Home' Trinidad and Tobago Guardian : June 13th 2013 Contents The Canadian public private partnership is
a useful model of infrastructure development
for countries of the Caribbean and even other
countries across the world, said Mark Romoff,
president and chief executive officer, Canadian
Council for Public-Private Partnership.
"Public/private partnerships began in Aus-
tralia and the United Kingdom, and Canada,
like T&T, is very good at studying what other
countries do, take the best practices and add
Canada s secret sauce and there is a model
that is best in practice. The Australian and
UK models have had to review their own prac-
tices and now have come to look at the Cana-
dian model," Romoff said.
Romoff was speaking at a seminar on Mon-
day on Canada s public private partnership
model on the first day of the Caribbean Invest-
ment Forum (CIF) at the Hilton Hotel and
Conference Centre, St Ann s.
He spoke about the "P3s" of public private
partnerships as being important in setting up
a framework for economic development and
to address infrastructure challenges.
"Infrastructure deficit is not just an issue
in T&T or not just an issue in Canada, it is
a global challenge that all countries are con-
fronting. Every country in the world is facing
the exact situation.
"The global infrastructure deficit is worth
Cdn$57 trillion. And I still think that number
is underestimated. It is a pretty significant
challenge. Infrastructure investment is a critical
driver of job creation, economic growth and
global competitiveness. It is important for
countries to move ahead with their infrastruc-
He said the P3s are not a new initiative.
"We have been in this business for over 20
years. We have a strong and long history. We
have 197 projects that are either in operation
or under construction. The value of those
projects are excess of Cdn$60 billion. Over
the last ten years, Canada has built 50 hospitals
across the country using the public private
partnership model with a value of Cdn$16 bil-
Romoff called it an alternative model to the
traditional model of design, bid and build by
one sole sector.
"The key is to engage governments in a
partnership with a consortium of companies
in the private sector where you turn to the
private sector and give them a chance to design
the project, build and finance it," he said.
Romoff made it clear that when they talk
about public partnerships in Canada, he s not
talking about privatisation.
"The public sector entities own the assets
that are being built and control it throughout
the life cycle. But it is about an allocation of
risks between the private and public sectors,"
"And it is about which entity will assume
Romoff pointed to features that make the
Canadian model different and said provision
was made in the federal budget in March to
encourage such partnerships.
"We have very strong leadership at the
national level. Our government a few years
ago created a special commission which
encourages more uptakes of public partnership
across the country. When communities take
up this model, the federal government then
takes up 20 per cent of this cost of the project,"
He said unlike the United States, where
public/private partnerships are governed by
legislation that differs from state to state,
Canada has legislation at the federal level
which unifies everything.
"In the US, there are 50 states, no two pieces
of legislation are identical in the US. It is com-
plicated in the US market, but in Canada, it
is very clear."
He said Canada s accounting style is clear
and is stated in the books.
"This is P3 and not peachtree accounting,"
He said the bidding process of this model
is very transparent.
"Our model is open to the world. Every
project is open to consortiums who wish to
bid. The process is then reduced to three bid-
ders, then requests for proposals are tendered
and you have a competitive process. In the
Canadian context, we are open to all inter-
national players. Opening it up ensures the
cost are driven down, which leads to innova-
He said the process is so transparent, people
can find information about the bidding infor-
mation on the Web sites of projects.
"All bidders are treated in exactly the same
way and fairly. And because of this, the process
is much shorter than the UK, sometimes six
to nine months shorter."
Romoff said the capital markets in Canada
are very good and they have "deep pockets"
and there are many investors looking for proj-
ects to invest in.
Model for Caribbean
Gerard Latulippe, Canadian High Com-
missioner to T&T, who also spoke at the
seminar, said there is a growing interest in
the region in the Canadian model.
"This is yet another indication of the grow-
ing interest in the Canadian PPP Model on
the part of governments and businesses in
the Caribbean, in the Americas and beyond.
And with the Government of T&T s recent
creation of a PPP Unit within the Ministry
of Finance, and its subsequent announcement
of an impressive list of potential projects,
this seminar could not be hosted in a more
timely location," Latulippe said.
He said in 2012, Canada s bilateral trade
with the Caribbean region was Cdn$2.3 bil-
lion, and its stock of direct investment in the
region was reported at more than Cdn$100
Latulippe said the P3 model is important
for Latin America and the Caribbean because
they are rapidly developing.
"Latin America and the Caribbean need
modernised and expanded communications,
ports, roads, urban transport, environmental
infrastructure, efficient and affordable hous-
ing, quality healthcare, and effective education
institutions," he said.
He said Canada is diversifying its markets
away from traditional partners, like the US,
to emerging economies and wants to offer
"Public-private partnerships have become
an increasingly important procurement vehicle
for Canadian government agencies seeking
to build or upgrade infrastructure assets from
hospitals, bridges and highways to wastewater
facilities and concert halls.
"Canada has established itself as one of
the leading public private partnership markets
in the world, with these projects now
accounting for ten-20 per cent of total infra-
structure spending in Canada," he said.
JUNE 2013 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
NEWS | BG7
Understanding Canada's P3 system
From Page 6
Baboolal, former chairman of the
National Infrastructure Development
Company Ltd, compared the cost of
building a home with conventional con-
crete and bricks to that using Therml
He said a typical house of 1,000
square foot of living space costs between
$450 and $475 a square foot whereas
TIAHCO s units will cost between $280
and $350 a square foot.
"Our foundation requirements are
Returning to the young couples who
visit him weekly, he said the company
can match the pockets of those who
may have inherited land from a rela-
"We build starter homes. Our plans
are expandable: a one or two bedroom,
in under 14 days, for between $280 and
$300 a square foot. We try to get away
from finishings. We are builders and
that is what we do," Baboolal said.
TIAHCO, which constructed Farah s
Court, 12 townhouses before Kay Donna
at the intersection of Southern Main
Road and the Churchill Roosevelt High-
way using Therml Impac products, is
developing 279 lots at River View Park
Two months ago, the sod was turned
for the new development Central
Springs, a 57-acre parcel development
"In Central Springs," Baboolal said,
sitting behind his desk in his loft-styled
office, "there are 200 lots available. In
San Rafael, there are 200 lots. We can
offer land at reasonable prices, depend-
ing on the market value and area and
whether it is gated or not." SC
Units can cost between
$280---$350 per square foot
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