Public Private Partnership

  • The Saskatchewan government’s number one priority is to protect the public interests and secure the best value for taxpayers’ dollars. The decision to use the partnership delivery model is made by the Province and is based on a rigorous analysis of procurement options to determine which approach makes sense.

  • Initial analysis and experience in other provinces indicates a P3 model for this type of project provides value for taxpayer money. 
  • This value is achieved by providing a fixed cost for the facility over the life span of the project.  The government will know the day the agreement is signed with the private sector partner exactly how much that facility will cost taxpayers over its lifespan. 
  • The P3 for the Swift Current Long Term Care Facility will be a Design-Build-Finance-Maintain (DBFM).
  • Using a DBFM model for the Swift Current Long Term Care facility means the private partner is responsible for designing and building the asset to comply with the required specifications.  The specifications focus on service objectives and outcomes (rather than being very prescriptive or detailed) which leaves room for the private sector to introduce innovation over the lifecycle of the project.
  • The private sector partner will also be responsible for arranging the financing during the construction period and the province will not begin any payments until the asset is complete and ready to operate.
  • The private sector partner will also be responsible for maintaining the asset in accordance with the performance specifications over a term of 30 years. Maintenance can include daily facilities maintenance, annual maintenance, and life-cycle maintenance, which includes major upgrades or replacements of major components.
  • There are many benefits to using the public private partnership model such as:  
      • P3s can reduce lifecycle costs and improve quality.
      • Evidence shows that the total cost of P3s is less than the total cost of traditional projects – a project that is on time and on budget more than offsets any higher cost of finance.
      • Private partner assumes the risk of cost overruns – not the taxpayer.
      • Value through design innovations.
      • Performance-based agreement with penalties for poor performance.
      • Guaranteed maintenance over the life of the project (30 Year Warranty).