Thank you, Mr. Chair, and members of the committee, for inviting the Canadian Council for Public-Private Partnerships to contribute to the study that the committee is undertaking of the Canada Infrastructure Bank.
I know the committee is aware that Canada, like all countries around the world, is confronting a significant infrastructure deficit while facing the additional challenge of fiscal restraint. Despite this reality, it is absolutely critical to invest in infrastructure, because it is well-known that such investments drive economic growth and prosperity, create jobs, increase productivity and promote global competitiveness. These are outcomes that couldn’t be more timely, and more relevant as governments focus on post-pandemic economic recovery.
The council commends the federal government, provinces, territories and municipalities for stepping up to the plate, earmarking significant funding to address this issue. Notably, the federal government set the bar with its $186-billion investing in Canada plan, and together with other creative vehicles, such as the Canada Infrastructure Bank and the smart cities challenge, is moving Canada’s innovation and economic yardsticks forward.
Our council is a national, not-for-profit, member-based organization consisting of nearly 350 public and private sector organizations, which works closely with all levels of government, indigenous communities and the private sector to enable them to become smarter, more innovative, and more effective at delivering sustainable infrastructure in Canada. I should add that the council is not a lobby group; rather, we partner with governments to achieve the very best performance, and return on their infrastructure investments while enhancing the quality of life of Canadians.
While we are proponents of public-private partnerships, P3s, we also recognize they are not a panacea. If used for the right reasons and on the right projects, P3s have delivered very strong economic outcomes in terms of projects being delivered on time. In fact, they are 13% faster than traditionally procured projects, and on budget, with savings to governments exceeding $27 billion. This is clearly excellent value for taxpayers. We now have 290 projects across the country and across a wide range of industry sectors. The value of those projects that have reached financial close today now exceeds $140 billion.
It's important to note, though, that P3s are not privatization. In every instance, governments retain ownership, control and accountability for the projects they've invested in. It's important to remember that P3 is simply a procurement model, nothing more.
Today’s unprecedented challenges, the reality of climate change, cybersecurity threats and now the COVID-19 pandemic, demand unprecedented action.
The Canada Infrastructure Bank, under its new leadership, its $10-billion growth plan, a new unsolicited proposals framework, and updated statement of priorities and accountabilities, is well positioned to play a central role in the government’s economic recovery plan. The council is eager to support the bank to enable it to be successful.
In particular, we commend the recent direction that the CIB established a target of $1 billion for indigenous projects. This is an important and timely step to address the serious infrastructure deficit that these communities are confronting, estimated to be anywhere between $25 billion and $30 billion. Indigenous people are also keenly interested in participating in major infrastructure projects. The Tlicho all-season road project in the Northwest Territories is an outstanding example of one of the first P3s in North America with an indigenous cash funded 20% equity stake.
In reality, however, access to capital at competitive rates for indigenous communities is a major hurdle, and the CIB has a unique opportunity to step in to redress this inequity.
The bank can make an important contribution to strengthening municipal project procurement and delivery. Municipalities account for the vast majority of infrastructure throughout the country, and will be lead players in delivering stimulus projects. At the same time, complex infrastructure issues often challenge local government officials. The CIB has the expertise, and specialized knowledge that can prove invaluable to advancing and completing these infrastructure projects.
I would say, Mr. Chair, that Canada has become a globally recognized hub for infrastructure development, and in particular, for public-private partnerships. We have earned a reputation around the world for being “best in class”, with an approach and achievements that are the envy of many countries. My council believes that over the coming months, as the CIB delivers on its ambitious agenda, it too will be seen to be best in its class.
I would be pleased to elaborate on the points I've made, and I look forward to your questions.
Thank you very much.