Infrastructure Ontario uses a made-in-Ontario approach to delivering large, complex public infrastructure projects. Public-private partnerships (P3) leverage the expertise and competitiveness of the private sector to successfully expand, modernize and replace Ontario's aging infrastructure.
Not every project is the same and we recognize the importance of using the right tool for each project. IO's P3 approach includes a variety of models to ensure projects are procured and delivered effectively.
Under P3s, provincial ministries and/or project owners establish the scope and purpose of a project, while design and construction work is carried out - and often financed - by the private sector. Typically, only after a project is completed will the province complete payment to the private-sector company. In some cases, the private sector will also be responsible for the maintenance of a physical building or roadway. For some very complex projects, there are situations where even after extensive planning and due diligence, there remain significant risks that are difficult to quantify or manage in advance of a project beginning. In cases like this, the partnership may require the public and private partners to share such risks (for example, an Alliance model).
Overall, Ontario's P3 approach allows projects to be delivered more efficiently and more cost effectively than traditional procurement. P3 also protects taxpayers from cost overruns by transferring project risks to the party with the expertise, experience and ability to handle that risk best.