Alberta Revives Controversial P3 Model for School Construction Despite Past Failures
Event summary
- Alberta government announced mid-July it will build seven elementary and junior high schools using private-public partnerships (P3s).
- P3 model involves contracting out design, building, financing, and maintenance for decades-long periods.
- CUPE Alberta President Raj Uppal warns of accountability issues and long-term cost inefficiencies with P3s.
- Alberta government has previously abandoned the P3 model twice in the past.
The big picture
Alberta’s return to P3s for school construction defies broader industry trends where other provinces have abandoned the model due to higher long-term costs and accountability problems. The move suggests a strategic misalignment between short-term budgetary relief and long-term fiscal responsibility, potentially impacting public trust in infrastructure governance.
What we're watching
- Governance Dynamics
- How Alberta’s repeated flip-flopping on P3s will impact investor confidence in long-term infrastructure projects.
- Cost Structure
- Whether the government can justify the long-term cost savings of P3s given past evidence of higher expenses.
- Execution Risk
- The pace at which accountability issues arise in maintenance and upkeep under the new P3 contracts.