Ontario study backs P3

The University of Western Ontario’s Ivey business school has published a paper that argues P3s have the edge over traditional procurement of infrastructure.

The paper by the Lawrence National Centre for Policy and Management claims that the incentives and accountability embedded in P3 projects give P3s a value-for-money (VFM) edge over traditional procurement.
The study was sparked by the December 2014 report by the Auditor General of Ontario into the model. The Centre was asked by firms active in both procurement environments to compare the processes and incentive structures embedded in the two approaches to public sector procurement.
It concluded that the P3 approach is generally superior because it brings to bear specialized expertise, and due diligence and accountability mechanisms that are not possible to replicate in the political environment in which public sector managers work.
However, the report also demonstrates that not all projects are best delivered by P3 and agrees with the Auditor General that value-for-money analysis is key to determining which approach is best for specific projects and that continued work to refine methodologies is strongly recommended.
A PDF of the report is available here.