Notice on Policy on the Management of Projects - November 12, 2013

Date modified: 2013-11-12

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Policy Amendment Notice – 12/11/2013 – Requirements to screen investments for public-private partnership (P3) potential

The Policy on the Management of Projects has been amended, effective November 12, 2013, to reflect the requirement for departments to screen large investments in infrastructure in order to assess if they are suitable for consideration of a public-private partnership (P3) delivery model as well as to report on the results of the screen as appropriate. Departments are required to complete the screen in consultation with PPP Canada.

The requirement to screen large investments in infrastructure for P3 potential was established in Budget 2011, which stated:

"Going forward, federal departments will be required to evaluate the potential for using a P3 for large federal capital projects. All infrastructure projects creating an asset with a lifespan of at least 20 years, and having capital costs of $100 million or more, will be subjected to a P3 screen to determine whether a P3 may be a suitable procurement option. Should the assessment conclude that there is P3 potential, the procuring department will be required to develop a P3 proposal among possible procurement options.

Departments will also be encouraged to explore the potential of P3 approaches for other types of projects and procurements of services."

Please note the following specific changes to the Policy on the Management of Projects:

  • Section 6.1.6 is amended to add ", including those in public-private partnership agreements,"
  • Section 8 is amended to add "PPP Canada for the provision of advice and expertise on the use of public-private partnerships, in accordance with its mandate established in its enabling Order-in-Council."
  • Section 9.1 is amended to add "Guideline to Implementing Budget 2011 Direction on Public-Private Partnerships"
  • Appendix A, third paragraph is amended to change "TB" to "Treasury Board"
  • Appendix B, section 4.6 is amended to add "To ensure the effective consideration of all suitable options, including a public-private partnership (P3), all infrastructure investments creating an asset with a lifespan of at least 20 years, and having capital costs of $100 million or more, will be subjected to a P3 screen, in consultation with PPP Canada. Should the assessment conclude that there is P3 potential, departments will be required to develop a P3 option among possible options."
  • Appendix B is amended to add "4.6.2 The results of the P3 screen are to be described, when applicable."

Note that the Policy on Investment Planning – Assets and Acquired Services has also been amended to reflect the requirement for departments to screen large investments in infrastructure in order to assess if they are suitable for consideration of a public-private partnership (P3) delivery model as well as to report on the results of the screen as appropriate. The Policy on Management of Real Property has also been amended to incorporate a requirement for departments to screen large investments in infrastructure in order to assess if they are suitable for consideration of a public-private partnership (P3) delivery model.

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