In Canada, an innovative way to rebuild roads, hospitals
British Columbia's 'private-public partnerships' have been touted as a model for the US to revamp its infrastructure.
British Columbia's political leader Gordon Campbell recently stepped aboard Vancouver's new light transit system and into the world's spotlight as one of the leading proponents of a burgeoning movement to twin the public and private sectors in building everything from bridges to roads and hospitals.
The Canada Line, a $2 billion light transit system running between Vancouver's downtown waterfront and the city's airport, is the latest in a string of public-private partnerships, or P3s, built in B.C. and being touted as a model for rebuilding America's infrastructure.
Typically, in a private-public partnership, government invests in the project, along with a private sector consortium which develops, builds, maintains, and operates the asset for a contracted period. The consortium often involves multiple international contractors, a maintenance company, and bank lenders.
While not everyone believes in the successful marriage of these seemingly unlikely business partners, California Gov. Arnold Schwarzenegger, for one, is a fan of B.C's P3 model.
Governor Schwarzenegger toured the Canada Line project site two years ago alongside Premier Campbell and has since been promoting B.C.'s experience as a template for financing and building public sector projects in California. He reiterated his praise for B.C.'s infrastructure partnerships following a meeting with President Obama last month to discuss future infrastructure projects – beyond the $787 billion federal stimulus package – that also included New York Mayor Michael Bloomberg and Pennsylvania Gov. Ed Rendell.