Planned NDP bill could stymie former Manitoba government's plan to build schools using P3 model

Manitoba'snew NDP government says it hasn't determined the fate of the nine new schools the Toriespromised to build through apublic-private partnership, but it is looking to impose more rulesshould schools like those, and other similar projects,proceed.

The premier is asking his education minister to "bring in newP3 accountability legislation to protect schools," according to the mandate letter issuedto Nello Altomare last month.

Similar legislation has existed in Manitoba. Passedby the previous NDP government in 2012and repealed by the Progressive Conservatives in 2017, the bill required a preliminary analysis of the costs and benefits, public consultations and the release ofa report from the public sector entity.

Any comparable legislation would complicate provincial efforts topartnerwith the private sector to build more schools, but Altomare doesn't mind.

"If it protects the taxpayer, we're always for that because that's what we have to do. We have to make sure that we are fiscally responsible. This legislation, or what it was before,ensured that."

Bundling build would save money, time: PCs

In March, the former Progressive Conservative government committed to building nine new schools over four years using apublic-private partnership, sometimes called a P3.

The model typically involves finding a private companyto design, build, finance and then maintain a number of facilities for a few decades.

Proponents say the benefits of these partnerships can include cost-savings and the private sector assuming the risk,but agreements in other jurisdictions have faltered because of mismanagement and a lack of checks and balances.

In fact, the PCs rejected a plan in 2018 to build schools under this model, saying it was too costly, butin this case, the party said the agreementwould save money and the schools wouldbe built faster as a developer can quickly shiftworkers from site to site.

At the time, Government Services Minister James Teitsmasaid cost savings could be realized in the long run by a contractor, for example, opting to spend more money at the construction stage to avoid needing to replace the roof years later.

The NDP, including Altomare, criticized the plan while in Opposition.

In an interview Thursday, Altomare said accountability legislation is necessary "because wedon't know what is in the P3 contracts that the previous government negotiated."

"We have to find outwhat stage we're at and then make decisions that not only benefit kids and families but also balancingthat fiscal responsibility that is alsopart of our mandate."

He said he would need to be convinced the P3 approach is worthwhile.

In some cases, P3 projects turned out to be more expensive than the publicprocurement process.He explainedthe private sector borrowsmoney at a higher interest rate than the government.

Even still, "we can't go in just being single-minded on this," he said.

Contractors wanting to build the nine schools had until Oct. 4 to submit their bid, one day after the provincial election that ushered the NDP into power.

Altomare wouldn't provide a timeline for when the new government would determine if anybid isworth pursuing.

Gina McKay, president of the Canadian Union for Public Employees Manitoba, said P3 accountability legislation can create an environment where such projects don't happen. She believesthat's a good thing.

"My thoughts arethat we need to cancel this plan immediately, and we hope that this legislation can do that by showinghow they don't work, that it's a PC plan, that it's a bad one and that we need to build schools in the traditional way."

The Tories planned to finish the nine schools by 2027.

In Winnipeg's English-language school divisions, two K-8 schools are planned for Pembina Trails, two in Seven Oaks and one more in River East Transcona.

The other schools are aK-12 French school in theFranco-Manitoban School Division, a K-8 school in Brandon School Division and vocational high schoolsin bothBeautiful Plains School Division and Seine River School Division.

Altomare doesn't believe the government would start from scratch in building these schools if it rejects apublic-private partnership.

"We have a lot of experience in building these schools using the public process and we have contractors that are locally experienced in putting these buildings together. I don't believe there will be any more delays at all."

Progressive Conservative education criticWayne Ewaskoisn't convinced, however.

He said the nine schools proposed under the P3 model "won't compromise quality at all."

"If the NDP are going toput a pause on that and bring in legislation, I think it jeopardizes the speed in which we're going to build these schools."