Canada’s steady deal flow, expertise, transparency, and stable economy are among the factors making it an attractive PPP market. Local firms are amenable to partnering with UK players on projects in domestic and third markets.
The provincial level of government has been leading the momentum in the Canadian PPP market. In particular, the provinces of British Columbia, Ontario, Alberta and Quebec have led Canada’s robust PPP project pipeline, primarily within the social and transportation infrastructure sectors, much of which fall to provincial responsibility to deliver these services.
Alberta: Alberta’s long-term 20 year indicates the use of alternative finance, including PPP, where suitable for ring road segments, schools, hospitals, and water and wastewater projects. To carry this forward, the Province will require CAD$6B each year of the plan.
British Columbia (BC): The Province’s project pipeline will include projects in healthcare, transportation, education and energy. The Province’s 2012/13-2014/15 transportation and infrastructure outlines the province’s transportation agenda.
Ontario: In June 2011, The Ontario Ministry of Infrastructure released its 10 year infrastructure plan, . The plan indicates the intension to use AFP in sectors including transportation, post secondary education, tourism, and government services.
To date, smaller scale projects and lack of PPP expertise has limited the participation of municipalities in the PPP market. However, municipalities are increasingly interested in this alternative form of finance as growing populations and aging infrastructure stretch available resources. Some Canadian cities have undertaken PPP projects in transportation, public transit, water and waste water treatment, and civic buildings. Bundling projects (e.g. Vancouver social housing projects) is one route to utilising PPP at the municipal level in this market.
Examples of upcoming projects include:
Biosolids Energy Centre (value CAD$782M), British Columbia
ErinoakKids Centre for Treatment & Development (value TBC), Ontario
Seneca College – King Campus Expansion (projected value CAD$50M-$100M), Ontario
Sheridan College – Mississauga Campus Expansion (projected value CAD$50M-$100M), Ontario
Hamilton Health Services Children’s Treatment Centre (value TBC), Ontario
St Michael’s Hospital (value TBC), Ontario
Getting into the market
UK PPP expertise is well regarded in Canada. There are a variety of routes to market UK companies can explore to gain access, including:
Establishing a presence provides local and ready access to the market. Foreign players, including UK companies, have established a presence in Canada to serve the market, including Carillion, Turner & Townsend, Lang O’Rourke, John Laing, Balfour Beatty Capital, Plenary Group, Macquarie.
Some restrictions exist to direct market access by foreign firms such as practising law and some public tenders may require local partners. However, factors present in the Canadian market such as a similar legal system to the UK, language, longstanding Canada/UK historical, cultural and business relationships, offer an opportunity for UK firms to serve the market through local strategic relationships.
Recognition of Canada’s PPP approach and expertise has gained international interest. Partnerships between Canadian and foreign players, along with Canada’s export driven economy, provides an opportunity for new joint export opportunities in third markets, in particular, markets where Canadian companies have an established footprint, such as the US, Latin America, Africa, and increasingly Asia and the Middle East.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.
The Canadian Council for Public-Private Partnerships (CCPPP) National Conference
26-27 November 2012, Toronto, Ontario