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Tuesday, June 28, 2011

Partnerships BC Update

Larry Blain, chair of Partnerships BC

PPP in BC spend is about $1.5B per year, a significant price of the overall $6B spend provincially on capital projects. The program began in 2001.

Any capital project that is $50M or more in BC needs to be analyzed whether it is applicable to be a PPP.

35 PPPs are underway or completed in BC to date.

Innovation, efficiency, and transfer of risk must be offset by a higher cost of capital. Partnerships BC has been optimizing the contracts over time to ensure that the minimum amount is used to offset the risk transfer, it is a continuous improvement process.

Procurement includes project boards for business governance which speed up the potential bureaucracy and collaborative process. Financing is optimized with the inclusion of an affordability line, which was implemented in the Sea to Sky Highway project. A budget was allocated over the 20 yr contract, and the business partners were asked to commit to a fixed amount of improvement per dollars over that period to manage cost over runs. This model has been adopted into healthcare PPPs.

Clear evaluation criteria are set up front, documents have been standardized, all to ensure a fair and transparent service.

Abbotsford regional was the first example in healthcare. Royal Jubilee is just completing, and is the next one up. Surrey Out Patient, Kelowna, and Vernon hospital upgrades were all healthcare oriented PPPs. Next up is the BC Cancer Agency for the North, and Ft. St. John.

Surrey Memorial project was the first project where a new process of awarding points for design and budget optimization was used by Partnerships BC.

a new evaluation framework is under development for the next RFP which will balance facility cost with clinical operational efficiency and enhanced patient outcomes. This is evaluated and awarded as points to bidders. is where you can sign up for newsletters and updates on projects.

- Posted using BlogPress from my iPad

Location:Kelowna, BC

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