PPP procurement in Canada: an economic analysis

The procurement of major infrastructure projects using public-private partnerships (PPPs) is rising globally. PPPs, however, are often characterised by lengthy tendering periods, defined as the difference between contract... [ view full abstract ]

The procurement of major infrastructure projects using public-private partnerships (PPPs) is rising globally. PPPs, however, are often characterised by lengthy tendering periods, defined as the difference between contract notice and financial close. Tendering periods are important because they account for a significant proportion of overall project delivery time. Slow tendering deters bidders thereby reduces competition for contracts and undermines the economic efficiency of PPP. The evidence suggests that there is significant variation in tendering periods across countries with Canada achieving average tendering periods of just over 18 months compared to almost 35 months for the UK and 34 months for Ireland (Reeves et al., 2015, 2017). Given Canada’s apparent success in achieving relatively short tendering periods this paper explores the procurement of PPPs in Canada in order to identify the factors that determine tendering periods for PPP. We use data on 149 PPP projects to examine the duration of tendering periods and to explore some of the main determinants impacting on the length of tendering in order to seek lessons for policymakers involved in the PPP procurement process in all European countries.