Public-Private Partnerships (P3) for Social Infrastructure. Alberta Schools Alternative Procurement (ASAP Team) Alberta Infrastructure
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1 Public-Private Partnerships (P3) for Social Infrastructure Alberta Schools Alternative Procurement (ASAP Team) Alberta Infrastructure John Gibson March 2010
2 Presentation Outline The Alberta Infrastructure Challenge P3 s in Alberta - An Overview P3 Characteristics ASAP Projects & Photos
3 Alberta s Infrastructure Challenge Provide new infrastructure when and where it is needed Control cost, schedule and scope Ensure quality and standards Balance new infrastructure with preserving existing
4 Alberta s Infrastructure Challenge Alberta s Capital Asset Base (2007) Provincial Highway Network, 21.2% Government Facilites, Housing & Other, 3.0% Municipal Infrastructure Support 54.3% Total Replacement Value (2007): $232 billion Post-Secondary Facilities, 4.0% Community Facilities, 0.4% Water & Wastewater Management, 4.6% Health Facilities, 5.4% School Facilities, 7.2%
5 Alberta s Infrastructure Challenge GoA Asset Management Objectives Construction cost certainty Construction schedule certainty High quality buildings that meet GoA standards Long term asset condition Life-cycle management (proper maintenance) Value to Alberta taxpayer
6 P3 in Alberta - An Overview Alberta defines P3 s as: An infrastructure project in which a private contractor: - Provides some or all of the financing for the project; - Designs and builds the project, often providing operations and maintenance for the project, and often backed by an extended warranty ; and - Receives payments from the government over an extended period of time, subject to deductions for failing to meet contractually defined performance standards
7 P3 in Alberta - An Overview Manage Project Program Plan Design Build Maintain Finance Project Program Delivery Facility Management Services P3 Procurement Own Building Own Land Manage Project Traditional Procurement Program Plan Design Build Maintain Finance Project Program Delivery Facility Management Services Own Building Own Land Public sector Private partner
8 P3 in Alberta - An Overview A Typical P3 Arrangement Province Availability Payments Capital Contribution Concession Agreement P3 Contractor Subcontractors Investment Payments Private Finance Design Build Operate/ Maintain
9 Project Assessment Process
10 P3 Characteristics Integrated, whole-life approach to design, construction and maintenance of a facility Demonstrate Value for Money (VfM) Cost Certainty (fixed price for construction) Schedule Certainty (fixed term for construction) Contract period Warranty of 30 years (long-term maintenance) Determine facility performance through output specifications Risk-sharing between private and public sectors
11 Project Design Features Use new core school and high performance modular classroom designs Standards common to all schools regardless of delivery mechanism K-4, K-6, K-9, 5-9 Only new schools LEED Silver
12 Maintenance and Renewal P3 approach will include maintenance for 30 years for such components as: building envelope mechanical and electrical systems Custodial services (occupant support and cleaning) remain responsibility of school board
13 Private Financing Payments to contractor (over the 30-year contract) depend on availability and performance If contractor does not perform province cannot pay lender Size of project attractive to institutional investors Investors provide oversight to protect their money
14 Contract GoA runs transaction process in collaboration with School Boards GoA signs contract Payments made by GoA Performance adjustments monitored by School Boards School Board obligation on the performance of custodial services Turn over provisions at end of term
15 Value for Money By constructing a large number of schools at once cost per school is lower Design efficiencies from core school approach Cost and supply chain management by using single consortium Accelerated construction schedule Provide schools where the students live and learn
16 G12 ASAP Procurement Process RFQ Identify 3 Respondents to engage in the RFP process through to final bids RFP Invite short listed Proponents to submit Proposals according to our Technical requirement SR1 - confirms the team and preliminary design development Optional Innovation Submission SR2 - detailed designs and plans SR2B - restated and revised SR2 including response to clarification questions SR3 - financial bid (Preferred Proponent is selected based on the lowest compliant bid)
17 Slide 16 G12 Same comment as before - centalize last comment at bottom GoA, 2/23/2010
18 P3 Projects in Alberta Constructed and operational - Anthony Henday South East (Edmonton) - North East Stoney Trail (Calgary) Under construction - ASAP I - 18 schools (Calgary and Edmonton) - Anthony Henday North West (Edmonton) Under procurement - ASAP II - 10 schools (Calgary, Edmonton and surrounding areas) - South East Stoney Trail (Calgary)
19 G14 ASAP I & II Projects Consolidated approach to designing, building, financing and maintaining (DBFM) ASAP I - 18 new schools ASAP II - 10 new schools Schools designed using a core design with modular classrooms LEED TM Silver standard for all schools Project will include 30 year maintenance and renewal (M&R) component School boards will own and operate the schools
20 Slide 18 G14 Same comment as before. Does John perhaps want to thread in some commentary on the DB High Schools on this slide? GoA, 2/23/2010
21 ASAP Project Team Project Working Committee is represented by: Infrastructure (Procurement Lead Ministry) Education Treasury Board Justice and Attorney General Finance and Enterprise Financial Advisor Transaction and Process Advisor Banking and Capital Markets Advisor Bridging Consultant Fairness Auditor (Independent)
22 G18 Potential P3 Projects P3 projects that could be considered: - Remaining ring road segments in Calgary and Edmonton - Water/wastewater - Additional vertical infrastructure such as health care facilities, post-secondary institutions, government buildings
23 Slide 20 G18 Same comment as before. Can we move the pictures around, as they look messy at the bottom - also, I would suggest different pictures, as these are not relevant to schools. GoA, 2/23/2010
24 Concluding Comments P3s not a panacea for all projects P3s complement conventional and other delivery methods Made in Alberta P3s can provide value to Albertans for the right type of projects Social infrastructure offers many interesting challenges and opportunities ASAP approach achieves GoA and Board objectives and delivers value
25
26 Main Entrance K-9
27 Main Entrance K-6
28 Main Gym - K-9
29 Library
30 Modular Classroom
31 Classroom
32 Science Room
33 2 nd Floor Common Area K-9
34 Common Area K-4
35 Boiler Room
36 Mechanical Room
37 Questions?
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