Transcript Government of Alberta PowerPoint Presentations

Bundling Projects - the Alberta School
Experience.
Public Sector Perspective
September 2014
SASKATCHEWAN P3 SUMMIT
Strategic Partnerships Office, Alberta Infrastructure
The Strategic Partnership Office (SPO)
• The SPO is a Division within Alberta Infrastructure
• The Office is the central authority within Government for P3s and
other innovative infrastructure partnerships
• The SPO is being positioned to focus on four lines of business:
Non-conventional partnerships
Conventional P3s
Agreement Stewardship
Practice Management
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Alberta’s P3 Schools
• Single contract for 32 years (2 year build and 30 year maintenance).
• Contractor:



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Designs and builds
Provides some of the financing
Maintains (an “extended warranty”) and
Receives payments from the government over 30 years, subject
to deductions for failing to meet contractually defined
performance standards
• Operations and building ownership remains with School Board
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Value Proposition
• Quality learning environment for growing neighbourhoods
• Schedule certainty and cost certainty
• Integrated life-cycle approach driving efficiencies
• Long term warranty (30-year) with payment on performance
• No deferred maintenance
• Added discipline in both public and private sectors
• Allocate risk appropriately
• Value-for-money (private financing costs offset by benefits and
efficiencies)
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Alberta School designs
• New schools built to provincial standards
• Core school/modular classroom approach (elementary/middle)
• Standard school designs common to new schools regardless of
delivery method
• Modifications made to meet School Board program requirements
• LEED certified
• Add or remove modular classrooms to accommodate changes in
student population
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Alberta School designs
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Why Bundle Schools?
• Fast track significant increase in school capacity
• Savings to the taxpayer
• Provides critical mass
 Attractive to investors (equity and bond)
 Construction economies of scale
 Standardization of material and equipment
 Volume of work for maintenance provider
 Simplifies maintenance
 Increased productivity
• Incents better long term partnerships
• Reduces long term procurement and administration costs
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Alberta School Bundles – Risk Strategy
• Standard design
 No ambiguity around Government requirements
 Jurisdictional equity
 Clarifies School Board expectations
 Tight technical requirements to maintain standards
 “Personalize” schools
 Reduces opportunity for innovation
• Aggressive schedule
 Government secures sites
 Government secures development permits
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Alberta School Bundles - Challenges
• Multiple School Boards and municipalities
• Creating timely community partnerships
• Simultaneous commissioning of multiple buildings
• Short period for School Board fit up
• Any sub-optimal design features reflected in multiple buildings
• Modular classroom supply capacity
• Sub-trade capacity in tight markets
• DB completion risk (1 project of many schools, not many projects of 1
school)
• Number of maintenance providers
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Alberta School Bundles - Value Achieved
PROJECT
PSC NPV
BID NPV
VFM $
VFM %
ASAP I (2008 $)
18 Schools, Completed on-time 2010
$731 M
$634 M
$97 M
13.3%
ASAP II (2010 $)
10 Schools, Completed on-time 2012
$358 M
$253 M
$105 M
29.5%
ASAP III (2012 $)
12 Schools, Completed on-time 2014
$332 M
$289 M
$43 M
13.0%
BASCP-I (2014$)
19 Schools, Did not demonstrate VFM
Not awarded June 2014
$557 M
$571 M
-$14 M
-2.5%
Total Savings
$231 M
11.7%
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Alberta School Bundles - Outcomes
• Taxpayer savings (short and long term)
• Significant increase in neighbourhood student spaces
• High quality work
• Owner and user satisfaction
• Environmental and community responsibility
• Motivated employees
• Volume of work (designers and contractors)
• Business development and growth
Well built, well maintained schools that exceed community
expectations
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Thank you