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Maturing model

01 September 2008

British Columbia's approach to risk transfer on its transport projects has become steadily more sophisticated. Gary Webster and Jussi Jaakkola, CH2M HILL, look at the sector's development.

The Province of British Columbia is currently in the procurement phase of its eighth transportation public-public partnership (P3) project since 2003. The projects represent a mix of performance-based availability payment models and a major real toll concession. In total, roughly C$7 billion ($6.7 billion) worth of transportation projects have either closed or are in procurement. In transportation and health care combined, a total of C$9 billion in P3 deals have reached financial close in British Columbia.

Over the last five years, the Province has moved through a significant learning curve as it has implemented this relatively rapid adoption of the P3 approach, supported by legal and financial advisors, consultants, and Partnerships BC (the company set up by government to advise on and facilitate P3s). In this short time, the Province has seen the creation and evolution of a standardised concession agreement and competitive selection process approach and, with...


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