Public-Private Partnerships in Municipal Infrastructure: Theory and Practice
As government deficits increase, a variety of approaches are being explored to reduce government expenditures. One technique is to involve the private sector in partnerships with government in the provision of services. This study examines the different models of public-private partnership, assesses their strengths and weaknesses, and reviews a number of specific case studies. Partnerships between school boards and municipalities were reviewed in three municipalities. In several cases, private firms were responsible for financing public infrastructure. Other case studies dealt with the operation of water and sewage treatment plants, garbage collection, and new regulations regarding waste management and the operation of the Windsor-Detroit tunnel. The report concluded that the private sector may be more efficient than government because of its competitiveness, speed of decision-making and flexibility of organization. Other benefits from private sector involvement arise from the ability of the private sector to utilize zoning permissions on publicly-owned land and the ability to pass on costs to home buyers. Difficulties with partnerships include the time required to negotiate contracts, the determination of a private rate of return which is politically acceptable and which also reflects the risk involved, the need to clearly define responsibilities, service levels and fee rates as well as the need to ensure that adequate maintenance takes place on facilities that are to be returned to government operations.
IBI Group, Canada230 Richmond Street West
Toronto, Ontario Canada M5V 1V6
Canada Mortgage and Housing CorporationRoom C4-250
700 Montreal Road
Ottawa, Ontario Canada K1A 0P7
- Publication Date: 1995
- Pagination: 1 v., 129p.
- TRT Terms: Administration; Financing; Local government agencies; Public private partnerships
- Subject Areas: Administration and Management; I10: Economics and Administration;
- Accession Number: 01149394
- Record Type: Publication
- Source Agency: Transportation Association of Canada (TAC)
- Files: TAC
- Created Date: Jan 28 2010 7:22AM