Introduction to Public-Private Partnerships
Instructor’s Overview
September - 2013
PPP Canada
Introduction
This course is intended to introduce Public-Private Partnerships (P3s) to undergraduate students in P3
related fields of study. The course materials have been targeted toward, and are suitable for, senior
undergraduate students in any of the following fields of study:
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Engineering
Business Administration
Public Administration/Political Science
Experts in the P3 domain in both the public and private sector were consulted to determine which P3
concepts and topics were critical to undergraduate students in these fields of study. The result of this
exercise was a list of specific learning objectives. This course was created to meet those learning
objectives common to all three fields, identified as follows:
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Students should know what a P3 is
Students should know why P3s are used
Students should know the circumstances under which P3s are used
Students should know the circumstances under which a P3 can fail
Students should know what a P3 project team looks like
Students should understand the concept of risk valuation/risk transfer
Students should understand the concept of the Value for Money calculation
The short term goal is to provide undergraduate students in different P3 related fields of study with a
uniform basic understanding of the above noted concepts. The long term goal is to allow students to
build on this basic platform by addressing learning objectives specific to their field of study. This will be
accomplished by expanding into more detailed exploration of field specific P3 concepts through
additional course modules.
Course Materials
Materials included in this package are as follows:
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Introduction to Public-Private Partnerships PowerPoint slides (Full Version)
Introduction to Public-Private Partnerships PowerPoint slides (Abridged Version)
Infrastructure exercise handout
Risk assessment exercise handout
Risk assessment exercise handout – Instructor’s copy
Instructor feedback form
Delivery
The full version of the Introduction to P3s course contains detailed information, examples, a case study,
interactive class exercises, and is structured to fit within a 3-hour lecture time slot (or three 1-hour
lectures). An abridged version, structured to fit within a 1-hour lecture time slot, has also been provided
which omits the class exercises, case study, and some detail but still addresses the learning objectives
noted above. Instructors are encouraged to use the full version whenever possible.
Detailed annotations are provided in the PowerPoint slide deck to assist with the course delivery. The
following provides a brief overview of the course structure and content, along with the suggested time
allotment for each section.
Infrastructure Exercise and Discussion (30 Minutes)
This exercise was purposefully placed prior to the title slide. It is intended to gauge the students’ existing
body of knowledge relating to how public infrastructure is built and to get the students thinking about
the process of building public infrastructure and the issues one can encounter. Working in groups,
students will attempt to complete the handout themselves followed by a guided class discussion as
outlined in the slides.
Note: The completed infrastructure exercise handouts provide a great opportunity to collect data which
can help improve this course and future additional modules. If possible, please return copies of the
students’ completed handouts to the Canadian Council for Public-Private Partnerships at
[email protected]
What is a P3? (15 minutes)
This section includes background, the accepted P3 definitions, the various procurement methods, the P3
method’s strengths and limitations and how it differs from traditional procurement, perceived benefits,
and perceived concerns regarding the P3 model.
When are they used? (20 minutes)
This section lists the criteria under which the P3 method is suitable for a project, what sectors are using
the P3 method, example P3s, P3 success factors, what can go wrong in a P3, and examples of failed
projects.
Disraeli Bridge Case Study (15 minutes)
The issue/opportunity introduced in the infrastructure exercise is reintroduced here. This section goes
through the actual process undertaken by the City of Winnipeg in their selection of a procurement
method. This includes the four procurement options considered, an overview of the selection process,
the detailed qualitative analysis to determine if the P3 method warranted further consideration, and
preamble setting up the risk transfer and value for money sections.
Risk Transfer (35 minutes)
The concept of risk transfer is introduced through an example relating it to automobile insurance and
the transfer of risk between the driver and the insurance company, done at a cost determined by the
amount of risk transferred.
The risk allocation exercise is designed to get students thinking about who (the public or private sector)
should assume what risk using the Disraeli Bridge as the example. The specific roles and responsibilities
for each stage of the project are given. Based on these, the students are asked to complete the handout
by working in groups to assign risk to the public/private sector for each item, keeping in mind that the
risk should be assumed by the party best equipped to handle the risk.
The last slide shows the monetary value assigned to the risks, noting that the traditional procurement
number is much higher since more risks are assumed.
Value for Money (15 minutes)
This section goes through the standard value for money calculation process and provides some of the
terminology and definitions. The Disraeli Bridge value for money calculation is provided. The key point
that this example illustrates is that the base costs of a P3 are higher than traditional procurement, but
the reduced cost of risk offsets this, and this is where value for money is created.
P3 Project Team Structure (10 minutes)
The typical P3 project team structure is introduced along with the corresponding team that completed
the Disraeli Bridge project. A summary of the results of the Disraeli Bridge project is provided.
P3 Organizations and their Roles (10 minutes)
PPP Canada, the Canadian Council for Public-Private Partnerships, and specialized provincial P3 agencies
are discussed here.
Summary (10 minutes)
The goal of this introductory course is to provide a uniform knowledge base for all students in a P3
related field of study. This knowledge based is summarized in the learning objectives noted here. Using
this as a platform, students are encouraged to continue their undergraduate education in the P3 domain
by focusing on learning objectives specific to their stream of study. The stream specific learning
objectives are provided here. Finally, references and links to additional useful information are given.
Feedback
A short questionnaire has been provided to solicit your feedback on the course materials. Your
comments are greatly appreciated and will help to improve this course and future stream specific
modules. Please return your completed form to the Canadian Council for Public-Private Partnerships at
[email protected]