Province gets tips on P3 follies

A Nova Scotia politician says this province should be careful when using private companies to build infrastructure.

The provincial government is using a private company to finance, design and build a $20-million causeway to Long Island, in Notre Dame Bay.

From Aug. 5, 2003: Long Island gets $20 million for fixed link

It's called a P3 project, or public-private partnership.

The Nova Scotia government used P3 projects extensively in the 1990s to build schools.

New Democrat MLA Bill Estabrooks says that was a major headache.

He says the projects were plagued with problems, from investors looking for profits from school fundraisers, to concerns over the buyout costs at the end of the lease agreement.

Read about Nova Scotia's woes: Pop money going to school developer: report

The Nova Scotia government hasn't done a public-private partnership in about five years.

Estabrooks says the public-private work well going into election because it gets infrastructure off the ground quickly.

But he warns the provincial government here to be careful.

"My message to anyone involved is buyer beware," he says.

"Look at the fine print, because there's many other details in that contract that the private developer is going to make sure that he is going to come out on the right end of."

In New Brunswick, Moncton Mayor Brian Murphy hasn't nothing but good things to say about public-private arrangements.

They built their city hall, water treatment plant and arena.

Murphy says if the contract is negotiated right, the problems are minimal. He suggests getting a good advisor.

"You need that arm's-length trusted advisor to determine the financial and the legal workability of any deal," he says.

A long-term care centre in Corner Brook is expected to be the next P3 project in this province.

From May 20, 2003: New home will involve private sector: Grimes