Public Private Partnerships (P3 Projects)

What are P3 projects?

P3 Projects are “Public-Private Partnerships” which are a long-term approach to procuring public infrastructure where the private sector assumes a major share of the risks in terms of financing and construction, from design and planning, to long-term maintenance.

What are the benefits of a P3 approach?

In practical terms, this means that:

  • the GNWT does not pay for the asset until it is built;
  • a substantial portion of the cost is paid over the life of the asset and only if it is properly maintained and performs according to specifications; and
  • the costs are known upfront and span the life-cycle of the asset, meaning that taxpayers are not on the financial hook for cost overruns, delays or any performance issues over the asset’s life.

For a guide to the Government of the Northwest Territories approach to assessing and acquiring capital infrastructure through a Public Private Partnerships approach click GNWT P3 Management Framework. You can also view the P3 policy here.

What P3 projects is the GNWT currently involved in?

The GNWT has successfully procured three P3 projects, now in the operations phase:

  • Mackenzie Valley Fibre Link (MVFL)
  • Stanton Territorial Hospital Renewal
  • Tłı̨chǫ Highway (formerly the Tłı̨chǫ All-Season Road)

In line with the GNWT P3 Management Framework & Policy, the government continues to assess viability for planned infrastructure projects under a P3 procurement model.