Incorporating and Managing Risk in Asset Management principles for P3 Projects in British Columbia

摘要

Over the last five years, the British Columbia Ministry of Transportation (BCMoT) has employed public-private-partnership strategies to initiate transportation improvement projects under a Design-Build-Finance-Operate (DBFO) contract model. This is also known as a Private Public Partnership (P3) arrangement. These projects reflect the province's strategy to fast-track the development of key transportation infrastructure that is critical for the long-term growth of the province's economy. The DBFO model includes the transfer of the infrastructure's Operation, Maintenance and Rehabilitation (OMR) responsibilities and associated risks to a DBFO Contractor for a defined period of time. There is considerable risk for both parties in undertaking a P3 project. The Concessionaire is responsible for arriving at a single cost during tender that is all inclusive for all work required in the next 25 years, whereas the Province is releasing control of detailed design and day to day operations of the concession length as well as getting fixed into a cost for the next 25 years, with little ability to defer or delay aspects to suit future financial and political landscapes. This paper highlights the risks for each party and discusses the subject of transferring or retaining risk. This paper concludes with a synopsis of those items that have manifested into contractual issues during the implementation of the various projects' OMR phase and provides some discussion of potential improvements for mitigation.