Insurance industry advocates P3s for smaller projects

The Canadian Life and Health Insurance industry has money to spend on Canada’s infrastructure and has advice for how governments could spend it for them.

The association has $570 billion in long term assets, and according to its president, Frank Swedlove, “a strong appetite to invest in Canadian infrastructure, to keep our country moving forward.”

Canada’s infrastructure deficit is between $350-$400 billion.

In an article published in the Globe and Mail on December 5, the association says that governments likely cannot fund the needs on their own, so the answer is public private partnerships. However, only the large projects of $100 million or more in size are suited to attract private sector investment because of the complex negotiations and deals that are involved.

In order to funnel more P3 investment into smaller projects, the association suggests setting up standardized P3 documentation. It says the federal and provincial governments should collaborate with the life and health insurers and other private investors to develop these documents.

The association also argues that they and government should find ways to bundle smaller projects together to a scale that warrants P3 investment. It says PPP Canada, as the federal agency, is the best party to lead this endeavour.

To read the December 5 article in The Globe and Mail, click here.