Saskatoon Regional Growth Summit, Olivia MacAngus

1. The Role of PPP in Supporting
Saskatoon’s Growth
Olivia MacAngus

2. PUBLIC-PRIVATE PARTNERSHIPS

3. The PPP Structure
What Is It?
• A contracting approach
for the delivery of public
infrastructure, characteriz
ed by:
– Fixed-price delivery
– Fixed schedule for delivery
– Single bid, integrating
design, construction and
asset management to
produce low 30-year cost
and better performing
assets
– Defined performance
guarantees by the
concessionaire
When to Use It
Is it public
infrastructure?
Is the capex > $80100 million?
•Greenfield roads, bridges,
community centres, WTP, WWTP,
convention centres, etc.
Is there a significant •PPP locks in pricing
& performance for
long-term asset
maintenance &
management
lifecycle
requirement?
replacement.
Can performance
specifications be
clearly defined?

4. Some Characteristics of PPPs in
Canada
• A variety of models:
– Each province has a unique solution
– Most reward technical compliance and low 30-year
price
– New focus on design solutions that reduce service
delivery costs (adjacencies, daylight, LEED design)
• Typically not revenue generating assets for the
concessionaire
– Few toll roads
– Any revenues typically flow to the public sector
partner

5. The value of PPP in a “hot” market
• Meet infrastructure needs sooner:
– typically faster delivery timelines (~ 3.5 - 4 years for
facilities; 3 years for roads)
– driven by low NPV evaluation & substantial
completion payments
• Fixed price contracts provide budgeting
predictability
• Concessionaire is at risk for long-term asset
performance – takes risk of labour pool, supply
chain over 30 years

6. Plenary Group Case Study
The Melbourne Convention Centre Precinct
•
Multi-use project
with civic and
commercial
components
•
Catalyst for Urban
Renewal
•
Leveraged
commercial
components and
private investment
to enhance civic
components
•
Created a premier
destination out of
what was previously
an underutilized
area

7. Philosophy
• Maximise Urban
Renewal
• Exceed PPP Brief
• Commercial Synergy
• Active Equity
• Aggressive PPP financing
given State retention of
demand risk
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9. Project Overview – Core PPP
Design, Construction, Financing and Maintenance
• New Convention Centre
– 5,000 seat plenary hall
– 4,800 sq m meeting rooms
– Pre-Function space
– Back-of-house facilities (e.g. foyer, kitchen, loading
docks, etc)
• Integration with existing Exhibition Centre
• Bridge across Yarra (no maintenance)
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10. Project Overview - Development
– Residual land made available
– Proponents invited to masterplan
– State had reasonably low expectations of any
premium to land value
– State expected non-underwritten future
development proposals
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11. By the Numbers
• The convention centre project achieved the following
investment
Total Investment
State Contribution
Private Sector
Core Convention Centre
Hotel
Retail / Office / Residential
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$1400m
$370m
$1030m
$550m
$150m
$700m

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13. Convention Centre Link
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14. Pedestrian Bridge
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15. Porte-Cochere Entrance
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16. Convention
Centre
Foyer
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17. Plenary Hall
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18. 18

19. 19

20. Hotel
Foyer
Hotel
Destination
Bar
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21. Room Interior
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22. Commercial Development
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23. South Wharf Retail
Key design features, elements and capacities of the
South Wharf Retail include:
• Riverside restaurants and cafes
• Office tower
• Residential townhouses
• Lifestyle retail
• Entertainment Hub including art house cinema and rock
climbing facility
• Premium brand homemaker retail complex
• Car parking facilities
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