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

Manitoba's new NDP government says it hasn't determined the fate of the nine new schools the Tories promised to build through a public-private partnership, but it is looking to impose more rules should schools like those, and other similar projects, proceed.

The premier is asking his education minister to "bring in new P3 accountability legislation to protect schools," according to the mandate letter issued to Nello Altomare last month.

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 Passed by the previous NDP government in 2012 and repealed by the Progressive Conservatives in 2017, the bill required a preliminary analysis of the costs and benefits, public consultations and the release of a report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

Any comparable legislation would complicate provincial efforts to partner with 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 a public-private partnership, sometimes called a P3.

The model typically involves finding a private company to 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, but in this case, the party said the agreement would save money and the schools would be built faster as a developer can quickly shift workers from site to site.

At the time, Government Services Minister James Teitsma said 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 we don't know what is in the P3 contracts that the previous government negotiated."

"We have to find out what stage we're at and then make decisions that not only benefit kids and families but also balancing that fiscal responsibility that is also part 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 public procurement process. He explained the private sector borrows money 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 any bid is worth 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 believes that's a good thing. 

"My thoughts are that we need to cancel this plan immediately, and we hope that this legislation can do that by showing how 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 a K-12 French school in the Franco-Manitoban School Division, a K-8 school in Brandon School Division and vocational high schools in both Beautiful 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 a public-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 critic Wayne Ewasko isn't convinced, however.

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

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