April 1, 2008

Nova Scotia turns to British Columbia for public-private partnership advice

HALIFAX

Nova Scotia will spend $200,000 to review 10 potential infrastructure projects that could be completed through partnerships with the private sector.

The minority Conservative government released a list last Thursday of projects that have already been forwarded to Partnerships B.C., a government agency that specializes in strategic infrastructure partnerships in British Columbia.

A one-year memorandum of understanding was signed with the agency in February. On the list are a replacement or upgrade for the Victoria General Hospital site in Halifax, a refit for a government office building in downtown Halifax, corrections facilities for northern Nova Scotia and work on Highway 104 between Sutherlands River and the Canso Causeway.

Also included are new court facilities for Halifax and New Glasgow, new residences for the Agricultural College in the Truro area, and a new water supply for the Harbourside Industrial Park in Sydney.

Premier Rodney MacDonald said the assessments would help the province decide whether to proceed with public-private partnerships — also known as P3.

“What it is, is a practical approach to utilize what’s already out there and not wanting to make the same mistakes, perhaps, that other jurisdictions have made... ,” said MacDonald.

He added that while each of the projects on the list are needed, the government hadn’t ranked them in terms of priority.

“There’s a need for each and every one ... and what we’ve determined is we need to get some outside expertise to weigh the benefits versus the cost,” he said.

The Conservatives are well aware of the political sensitivity attached to public-private partnerships, having scrapped a previous Liberal program used to build schools as too costly, eight years ago.

This time around the government is promising a transparent process that will only proceed if the finances make sense.

Infrastructure Renewal Minister Murray Scott has made it clear that just because a project is up for consideration doesn’t mean that it will proceed as a P3.

“My first priority is to ensure that Nova Scotia taxpayers are protected and that we get good value for the dollar,” said Scott.

But NDP Leader Darrell Dexter is skeptical that’s possible in using an agency “set up to promote P3 partnerships.”

“That’s (Partnerships B.C.) not there to protect the financial interests of the people of Nova Scotia. An independent cost-benefit analysis would have to be done by an independent office like the auditor general,” said Dexter.

To that end, Dexter said he planned to reintroduce an amendment to the Auditor General’s Act first brought forward by former Tory leader John Hamm in 1998.

The amendment calls for all P3 projects worth more than $5 million to be audited and subject to a cost-benefit analysis.

“Unfortunately, that bill wasn’t passed . . . because the Tories got elected in large part in opposition to many of the P3 projects that they are now promoting,” said Dexter.

Liberal Leader Stephen McNeil is also wary, but isn’t as concerned about the involvement of the British Columbia agency.

The province expects to receive the first set of assessments from Partnerships B.C. by late June.

Canadian Press

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