Thank you, Mr. Speaker, and I’d like to thank our committee chair, Mr. Menicoche, as well.
Phase I
As the audit report explains, the purpose of a P3 is to shift a portion of the risks of a public project to a private sector partner who brings technical and financial capacities to the project. A P3 procurement strategy carries risks in that the public sector must establish a working relationship with a suitable partner and clearly negotiate each party’s obligations to the project.
In the case of the Deh Cho Bridge, the audit found that the project was not a P3 because the private sector partner had no equity to invest in the project, and limited capacity to manage a project on that scale. The GNWT assumed more and more risk as the cost of the project increased, without shifting any significant risks to the private partner as anticipated in a conventional P3.
As a sidebar, the Auditor General’s report presents an exhibit of the perspective of the community of Fort Providence and its relationship with the GNWT throughout the Deh Cho Bridge project. The committee does not want to preclude the possibility
of future partnerships between communities and the GNWT in the area of infrastructure projects, but stresses that an approved process must be followed, consistent with the Auditor General’s recommendation that the GNWT establish a senior project oversight committee to provide advice on the steps required to develop a major project and act as a forum for discussing project objectives, risks, procurement and other relevant matters.
Recommendation 1
The Standing Committee on Government Operations recommends that the GNWT finalize a public-private partnership policy. This policy should include provisions to ensure that:
•
the GNWT undertakes an analysis of its full financial exposure;
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the roles and responsibilities of the GNWT and its partner(s) are clearly defined;
•
due diligence is carried out on the
partner’s capacity to fulfill its roles and obligations.
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risks and opportunities are proportionately shared; and
•
the GNWT establishes a clear
understanding of a community’s objectives and abilities when entering a partnership with a community.
Cabinet should provide a timeline for the finalization of the public-private partnership policy within the life of the 16th Legislative
Assembly.
Mr. Speaker, at this time now I’d like to pass the report on to Mr. Abernethy, my colleague from Great Slave.