Public-Private Partnerships and the Budget
Itâ€™s noteworthy thatÂ the week before a budget that will supposedly accelerate infrastructure spending, the Finance Minister is announcing new management for PPP Canada.
Budget 2007 dictated that provinces and municipalities seeking federal infrastructure funding “be required to demonstrate that the option of undertaking the project as a public-private partnership has been fully considered.” As I have pointed out, given the current shortage of private capital, this requirement constitutes nothing but an artificial delay.
If Budget 2009 is serious about getting “shovels in the ground,” it will abandon this requirement if not dismantle PPP Canada altogether. Budget 2007 allocated $25 million over five years to establish and operateÂ PPP Canada. Scrapping it would save more than cutting the PBOâ€™s budget from $2.7 million to $1.8 million.