A winning 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 Campus 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

These factors are an incentive for the private partner to begin construction quickly, as no money is exchanged until the new institution has opened its doors. It is also 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.

McGill Health Infrastructure Group