P3 process is bad for Manitoba

Hey there, time traveller!
This article was published 17/05/2023 (880 days ago), so information in it may no longer be current.

The Progressive Conservative government recently announced it will use public-private partnerships (or P3s) to construct schools. The government’s decision to use the P3 model shows it cares more about privatization than doing what’s best for kids, families and communities in Transcona and across Manitoba.

The P3 process is commonly used when there expertise is needed that isn’t available in the local construction industry. However, the design and construction of schools is not a highly specialized or exclusive field.

The only rationale brought forward by this government for using a P3 process is that it will save money and allow schools to open sooner. But if we look to examples in other provinces that have used P3s, we can see that this is not the case. There are many examples of how the P3 process has failed to lower construction costs and the ongoing maintenance of schools.

P3s typically place the responsibility for financing on the contractor. Contractors cannot borrow money as cheaply as governments. The result? These higher lending costs are then passed down to taxpayers.

P3s cost more money than publicly built schools and the government knows this — in 2018 it decided against using the P3 model to build schools because they found the public model would save them enough money to build an additional school.

Building multiple schools with a single P3 contract will result in a situation win which many very good, competitive smaller contractors won’t be able to compete. This will result in larger, out-of-province contractors doing the work. One contractor constructing nine schools at once will likely not be able to complete the work any faster or even as quickly as nine contractors. Individual, smaller contractors would be local to Manitoba and spread the work out among a more diverse set of local sub-trades.

Finally, and most concerning, P3s usually feature fewer specific requirements for the construction and maintenance obligations in their contracts. Who would be left to deal with this? Cash-strapped school divisions.

The extra costs of P3s are well documented in poorly and hastily planned contracts devised to meet political timelines rather than the public good. It’s clear the government has not thought of what’s outlined here when they announced they would use a P3 process to construct schools, or they just don’t care.

What do you think about the government’s plan to build P3 schools? You can contact my office at nello.altomare@yourmanitoba.ca or 204-594-2025