Thank you, Mr. Chair. This is what we call in Canada “just-in-time delivery”. I apologize. It has been one of those days.
Good afternoon, and thank you all for inviting me to come to speak to you today. I'd like to speak a little bit about Canada's public-private partnerships, or P3, experience, the role of the Canadian Council for Public-Private Partnerships and the opportunities we see to expand and strengthen the effectiveness of P3s across Canada, and to take advantage of Canada's experience and expertise and take it global.
Today, all countries around the world are facing large infrastructure deficits at a time of serious financial constraint. In fact, in a recent study the McKinsey Global Institute estimated the global infrastructure deficit at U.S. $57 trillion, and this is likely an understated estimate. Canada too, as you know, is confronting a huge infrastructure deficit across all levels of government.
At the same time, sound modern infrastructure is key to Canada's productivity and economic growth and ultimately central to a more prosperous and globally competitive Canada. This reality has placed a premium on innovative approaches to infrastructure development and this has led to public-private partnerships, or P3s as we call them, moving increasingly to centre stage in Canada. In fact, Canada enjoys one of the most active P3 markets in the world with 219 projects in procurement, under construction or in operation, with a value of over $68 billion.
I've included a chart in my notes from which you'll see that these projects are active right across Canada in a broad range of sectors. This large and diverse portfolio of projects has also enabled our domestic industry to develop the experience and expertise that is now positioning itself as a recognized and respected global player. The timing is excellent as international P3 markets, notably in the United States, are now taking off.
What are public-private partnerships? Simply put, P3s are partnerships between governments and the private sector to build public infrastructure, like roads, bridges. hospitals, schools, or to deliver services. P3s can be structured in different ways, allocating varying degrees of responsibility for design, construction, financing, maintenance, and sometimes operations to the private sector while always remaining in public ownership and control
Experience has shown that P3 projects are delivered on time, on budget, and at less cost, and are better maintained than those projects procured using the conventional design-bid-build approach. This translates into greater value for money for Canadian taxpayers. With our large portfolio of projects and our track record of success, Canada is today seen as a global leader in P3s with a model that is recognized internationally as best in class, and other countries looking to establish P3 programs regularly come to Canada to study our approach.
Why is this? There are several reasons: We have learned from experience in other jurisdictions—particularly the U.K. and Australia, where this model was initiated—and adopted their best practices that have clearly strengthened the Canadian approach.
Canada does P3s for the right reason. Value for money is the key factor in determining whether P3 is the best procurement option. P3s are not a panacea, but when they demonstrate best value for money, they consistently deliver high-quality outcomes.
Canada also has strong public sector institutions in British Columbia, Alberta, Saskatchewan, Ontario, Quebec and New Brunswick, and federally with PPP Canada, all with dedicated P3 expertise and robust procurement practices that lead to efficient, open, and competitive bidding. No other country has this governance structure in place.