April 3, 2008

New federal public-private partnership fund comes with strings attached, Treasury Board president warns

Ottawa may require private investors to cough up majority share of project costs

WINNIPEG

A new federal public-private partnership fund will probably come with some serious strings attached, warns Treasury Board President Vic Toews.

The $1.25-billion fund, announced in last year’s federal budget, is being eyed as the likely source of federal cash for media mogul David Asper’s proposed new football stadium. It could also one day help pay for everything from recreation centres to roads.

Toews says the P3 program’s rules are still being worked out by the federal finance minister. However, he added there may be a requirement that private investors, not governments, bear the majority of the costs on a project.

“The intent of the P3 program is that you get some public money to leverage larger amounts of private money.”

Toews said he’s still working on a deal to fund Asper’s stadium project — a deal that’s been in the works for months and is costing the CFL Winnipeg Blue Bombers thousands in consulting and legal fees. Asper has asked for free city land, plus $80 million from the province and city, to help pay for a $146.8-million stadium and retail complex.

Asper, a senior executive at CanWest, would chip in $41.8 million for the stadium, plus the $25 million cost of the retail complex.

Asper’s original proposal would have governments bearing most of the cost for the new stadium.

Toews also said the P3 fund could help leverage millions in private dollars for wastewater projects, bridge repairs, recreation centres and pretty much any other public amenity.

Canadian Press

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