Since actual annual payments are almost 3x the contractual obligation, it looks like the $400 million Sea to Sky Highway improvement project will involve payments to the private partner of $1.5 billion. And remember, the province financed one third of the project’s construction cost while the P3 financed two thirds…
The 10-year increase, 2006-2016, in contractual obligations was $67 billion, while the regular provincial debt rose by $31 billion. That’s almost $10 billion a year increase in financial commitments by a government that claims they are creating “debt-free BC.”
It cannot be taken for granted that PPPs are more efficient than public investment and government supply of services. One particular concern is that PPPs can be used mainly to bypass spending controls, and to move public investment off budget and debt off the government balance sheet, while the government still bears most of the risk involved and faces potentially large fiscal costs.
It wasn’t on budget for the public but probably was for the private companies hidden behind the Sea-to-Sky Highway Investment Limited Partnership. Liberals are masters of public finance in one particular way. They deliver opportunities to deal makers and deal flippers, with details of all transactions hidden from view. It wasn’t long before the first flip happened on the Sea-to-Sky project.
British Columbia’s June sale of oil and gas rights brought the 2015 six month total to $7.1 million. The monthly average for this calendar year is the lowest in 38 years reported […]
BC’s recent Budget and Fiscal Plan states total provincial debt is $63 billion. This amount, 62% higher than in 2009, is 27.3% of gross domestic product. Five years ago, the ratio was […]
One interesting result from Saturday’s municipal elections was Abbotsford voters’ indisputable rejection of water supply privatization. New mayor Bruce Banman, an opponent of water delivery through a proposed P3, believes the single […]
BC Liberals in Bed with P3 Industry There is also the curious case of the Macquarie group which is a prominent fiscal agent for the B.C. government and other public agencies and […]
If you sold your house and put the money in your chequing account would you say you had a surplus? This is what the Liberals have done by selling BC Rail and […]
Since the beginning of time, the public built facilities in partnerships with private industry. Typically, government determined needs according to its priorities, hired consultants for design and tendering, awarded work to the […]