New N.L. divided highway will be a P3 project, and NAPE crews won't be welcome
Transport minister confirms expensive highway upgrade will be designed, built and maintained by a contractor
For the first time, there are plans to develop a major highway project in Newfoundland and Labrador through a public-private partnership — a project that's ignited controversy because it means unionized government road crews won't be welcome.
"That is something that we are not prepared to accept," Jerry Earle, president of the Newfoundland and Labrador Association of Public and Private Employees, said on Wednesday after being informed of the government's intentions by CBC News.
Transportation and Infrastructure Minister John Abbott confirmed in an interview this week that the so-called P3 approach will be used to build two new sections of divided highway in eastern and central Newfoundland.
In an interview on Tuesday, Abbott said the plan is to partner with the private sector in what's known as a DBFOM model, which is an abbreviation for "design, build, finance, operate and maintain."
The decision to take the P3 approach was based on the success of previous P3 agreements to build hospitals and long-term care homes in Corner Brook, Grand Falls-Windsor, Gander and St. John's, he said.
"We felt it was an opportune time now to bring it over to the transportation infrastructure side of my department," Abbott said. He hinted more P3 road projects will likely follow.
Construction to begin in 2025
Abbott said a request for proposals will be issued later this year for those interested in a 30-year agreement for a 40-kilometre section of twinned roadway from Whitbourne to an area west of Bellevue, and a 15-kilometre stretch from Grand Falls-Windsor to Bishop's Falls.
Traditionally, the government hires private contractors to build roads and bridges, and after the work is done and payment is made, the department operates and maintains the infrastructure.
But in this scenario, the government will enter into a long-term contract, which will require the private entity to build the necessary roads and bridges and interchanges, and then ensure the road is maintained at national standards for the duration of the contract.
"We think it's a creative way of getting best value for money," said Abbott, who stressed that users will not have a pay a toll to use the privately operated sections of highway.
"This will be seamless for the travelling public."
Construction will begin in 2025, Abbott said, and it will take about three construction seasons to complete.
The provincial and federal governments have committed more than $300 million for the project, so it's not yet clear whether the successful bidder will have to provide any of the financing, as is typically the case in P3 projects.
"We're hoping that that will be at a minimum," Abbott said, "but given the way prices are escalating, that's something we'll have to consider once we get the proposals back."
Abbott confirmed the maintenance component of the P3 contract will also require the successful bidder to clear the new sections of highway of ice and snow.
In other words, the familiar yellow snow-clearing equipment operated by government workers represented by NAPE will be replaced on those sections of highways by private contractors.
"There will be private operators to deliver on those roads," Abbott said.
No briefing for NAPE
Abbott said he had not briefed NAPE leadership but plans to do so as the process is further advanced.
He said his department will abide by the current collective agreement with NAPE, which represents roughly 800 government workers who are assigned to snow-clearing operations.
Abbott also said he does not anticipate any job losses.
"There's enough work to go around currently and we're short of of staff right now at the best of times."
Abbott said private contractors are already used to clear snow and ice from some major roadways in the province, such as the Trans-Labrador Highway.
NAPE has regularly blasted the government for its increasing reliance on P3s, calling it "privatization creep" and saying it shifts the cost for government infrastructure onto future generations.
Jerry Earle said it's offensive that he had to learn about the department's plan from CBC News. He warned Abbott and the Liberal government to brace for vigorous pushback from the union.
"It's a path that is not acceptable to the women, men that are there working today and it's not acceptable to the union," Earle said.
As for Abbott's assertion that there's a shortage of highways maintenance workers, Earle said it's a reflection of the government's poor recruitment and retention efforts.
"That was the responsibility of them to ensure that vacancies were appropriately filled, and they have not done that," said Earle.
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