PPP schemes cost the government more, says Canadian study

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/