The Gordie Howe International Bridge project will be delivered through a public-private partnership (P3).
What is a P3?
According to P3 Canada, a public-private partnership is a long-term performance-based approach to procuring public infrastructure where the private sector assumes a major share of the risks in terms of financing and construction and ensuring effective performance of the infrastructure, from design and planning, to long-term maintenance.
Why use the P3 model?
A P3 is a co-operative venture between a public sector entity and a private sector partner for the provision of infrastructure or services. The partnership is built on the expertise of each partner that best meets clearly defined public needs, through the most appropriate allocation of resources, risks, and rewards.
The benefits of a P3 include:
- The model allows for an appropriate sharing of risks between the government and the private sector. For instance, cost overruns and delays to projects are shifted from the taxpayer to the private sector.
- A ‘whole life’ approach is used in the delivery of the project with the private sector having responsibility for the design and delivery of the project and also the long-term operations and maintenance.
- The private sector’s expertise, efficiencies and innovation are utilized in delivering large-scale infrastructure projects as specified by the public sector.
- The private sector is paid only on performance, aligning financial incentives for on-time, on-budget delivery and for the achievement of performance standards during the useful life of the asset.
How is a private sector partner selected?
To select a private sector partner to deliver the project components – the Canadian and US Ports of Entry, the bridge and the interchange to Interstate 75 – Windsor-Detroit Bridge Authority (WDBA) is running a rigorous, fair, open and transparent procurement process. The procurement process is made of two main stages – the Request for Qualifications and the Request for Proposals. WDBA’s procurement process is designed for the WDBA to choose a suitable private sector partner with the skills, experiences and resources necessary to design, build, finance, operate and maintain the Gordie Howe International Bridge project.
For more information about WDBA and the Gordie Howe International Bridge project visit www.wdbridge.com. Follow us on Twitter at www.twitter.com/WDBAbridge, like us on Facebook at www.facebook.com/WDBAbridge and connect with us on LinkedIn at www.linkedin.com/company/wdba-apwd.