A public-private partnership (PPP)
A public-private partnership (PPP) is a long-term contract under which a public body allows a private-sector company to participate in designing, constructing and operating a public project. After exhaustive studies and consultations, the provincial government decided that the MUHC’s Glen site would be designed, built, financed and maintained through a PPP. Already widely employed in the United Kingdom, PPPs are now gaining in popularity in Canada. They provide a number of significant advantages:
- The private partner takes on the financial risk
- The private partner works according to a set budget and timetable
- The private partner must assume the costs related to any financial variables, such as price increases, inflation, unforeseen construction obstacles, and major penalties in the case of delays
- The private partner maintains the building for a period of 30 years
It is in the best interest of the private partner to provide high-quality buildings and facilities given that the company must also maintain the installations. By entrusting the design, construction, financing and maintenance components to a private expert, the PPP model allows health professionals to concentrate on their first priority: patient care.