P3 projects move into billions

“I think Canada is one of the best infrastructure markets in the world right now,” said one investment banker whose employer is active in this sector. “We have finally got to a place where Canadian banks and financial markets understand P3’s, where Canadian construction companies understand what’s involved in order to bid for them and to complete them well and [where] the Canadian governments, finally understand how they work and how to deliver programs effectively,” he said.

But the real key, the banker said, is that there is a solid pipeline of new projects, as governments come to the conclusion that there are alternative ways to finance, build and manage infrastructure programs, in part because of budgetary constraints. It follows that if there is a steady stream of new investment opportunities, then institutional investors will make a commitment to the sector by appointing designated professionals. On the other hand, if the deals are sporadic, then there will be a reduced commitment.

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