Finance Committee on May 17th, 2012

[Martine Lajoie]

It will enable PPP Canada to engage in a more direct relationship with the departments in the provision of advice—similar to what we see for the Canada Development Investment Corporation, which is an agent of the crown for the purpose of providing advisory services to federal departments.

[Scott Brison, Liberal, Kings—Hants, NS]

How many projects have been funded by PPP Canada so far?

[Martine Lajoie]

Seven projects have been funded, totalling $110 million in federal contributions.

[Scott Brison, Liberal, Kings—Hants, NS]

What's the status of the Muskrat Falls power transmission project—the Nova Scotia and Newfoundland and Labrador project—in terms of PPP Canada's role?

[Maxime Beaupré]

The two provinces, I believe, submitted an application to the PPP Canada fund under round two, which closed in 2010, but the crown corporation determined that the ask was too large for the size of the PPP fund. I believe since then the provinces reoriented their ask to the federal government, so it's no longer being considered for funding by PPP Canada.

[Scott Brison, Liberal, Kings—Hants, NS]

It is no longer being considered by PPP Canada. Okay.

As well, could you explain the status of the PPP screen, how that works?

[Maxime Beaupré]

Budget 2011 announced that federal departments would be required to assess the suitability to PPP procurement for their capital projects with $100 million in spending—that's the threshold to apply the screen—for assets that would have a lifespan of 20 years. For such projects, departments have to basically ask themselves the question of whether this project could be delivered successfully as a PPP. And for as long as this option remains viable, the option is on the table.

At the end of the day, the responsible minister or the Treasury Board, depending on the level of delegation of authority for procurement, will make a decision based on the best value.

[Scott Brison, Liberal, Kings—Hants, NS]

Does PPP Canada, on a consultancy basis or some other advisory-type basis, provide advice to the provincial governments or municipal governments? Is that part of the role from time to time?

[The Chair, Conservative, James Rajotte]

A brief answer, please.

[Maxime Beaupré]

Most of the interactions of PPP Canada with provinces involve the delivery of the PPP fund. In that respect, PPP Canada helps municipalities, provinces, and territories in developing projects that can be submitted for funding under the PPP fund.

[The Chair, Conservative, James Rajotte]

Thank you.

M. Caron, s'il vous plaît.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

You say that PPP Canada has approved seven projects so far. How many projects have been submitted in all? Do you know whether any projects have been turned down or have failed to meet the PPP Canada guidelines?

[Maxime Beaupré]

As my colleague said, in each round, we saw increased interest by stakeholders—be they provinces, territories or municipalities. In the first round, I think 20 proposals were submitted. In the second round, the number of proposals was already up to 70. In the third round, there were 110 or 120 proposals. The fourth round is ongoing. We do not know how many requests have been submitted so far because the round will end in June.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

What is the most common reason for a refusal? Did any factors frequently play a part in determining that a PPP will not be accepted?

[Maxime Beaupré]

I want to begin by clarifying that most decisions to refuse requests are made by the corporation or its board of directors. Their mandate is to administer the fund. In most cases, refusals are simply due to the fact that people do not meet the minimum eligibility criteria. They sometimes have little knowledge when it comes to PPPs. They submit a project that does not necessarily fall in line with PPP requirements. It is also part of the corporation's mandate to educate various stakeholders on how PPPs work. Either a project is simply not a PPP, or it is not in a category of projects that are eligible for funding. The refusal may also be due to the fact that the project is far too large to be covered by the fund.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Would the Auditor General potentially have the authority to audit PPP Canada?

[Maxime Beaupré]

That would be entirely possible.

The Auditor General co-audits the corporation's financial statements. The Auditor General has the discretion to audit the corporation's management, administration and various services.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

I have another question.

The proposed amendments state that the Crown's responsibility is limited to the activities laid out in clause 211. Does PPP Canada carry out any activities that are not specified in clause 211?

[Martine Lajoie]

Actually, another part of its mandate is to deliver PPP funding. That means the corporation is supposed to assess the proposals submitted by stakeholders and recommend investments to federal contributions. When it comes to those activities, PPP Canada is not considered an agent of Her Majesty.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

That's the case for any activities not listed in clause 211.

[Martine Lajoie]

Exactly.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

So Her Majesty is not responsible for those activities, but only for those listed in clause 211.

[Martine Lajoie]

Exactly.

[Guy Caron, NDP, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Very well, thank you.

[The Chair, Conservative, James Rajotte]

Mr. Mai, go ahead.