PPP schemes cost the government more, says Canadian study
The study revealed that for every two schools financed through PPP in
Alberta, Canada, an additional school could be built for the same cost.
By INA ALLECO R. SILVERIOO
Bulatlat.com
As President Benigno Aquino III prepares to deliver his second State
of the Nation Address (SONA) on July 23, he is expected to sing praises
to his administration’s centerpiece program comprised of public-private
partnerships (PPP).
Youth group Anakbayan in Mindanao said Aquino’s claims that PPPs are
good for the economy is not based on fact. It said that the exact
opposite has been proven by a recent study in Canada, which revealed
that allowing the private sector to fund infrastructure projects costs
more than if the government spends for it.
“President Aquino has turned over the responsibility to provide the
Filipino people with important and necessary social services to the
private sector, ” said Cherry Orendain, Anakbayan spokesperson in the
Southern Mindanao Region.
Orendain cited a study conducted by the Canadian Union of Public
Employees (CUPE) declaring that government infrastructure projects
cost more when funded in partnership with private or corporate
institutions.
“The study revealed that for every two schools financed through PPP
in Alberta, Canada, an additional school could be built for the same
cost, ” Orendain said.
In a study released May 2012, CUPE said that public-private
partnerships cost more yet deliver less. It said the privatization of
British Columbia’s sewage treatment system had it pushed through would
have cost $116 million more. The construction of an events center
experienced deficits, delays and cost over-runs that forced the city of
Penticton, B.C to reduce services in other vital areas, including
policing and community recreation. The city was unable to transfer the
construction risk to their private partner and taxpayers were handed a
bill for over $25 million in added costs..... MORE
Source: Bulatlat.com
URL: http://bulatlat.com/main/2012/07/18/ppp-schemes-cost-the-government-more-says-canadian-study/
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