A new Transcona police station slated to begin construction by September of 2007 will be done using a model the Canadian Taxpayers Federation (CTF) has been championing for years, public-private partnerships, or P3s. The CTF congratulates Mayor Katz for keeping his commitment to find alternative funding structures for large capital projects.

According to the Canadian Council for Public-Private Partnerships, there are at least 8 different forms of P3s. Everything from operation and maintenance contracts to design and build can be done as a P3.

What do P3s mean for taxpayers Simply put, P3s mean taxpayers aren't saddled with major costs up front and will see the private contractor build, maintain or run a project in exchange for an annual fee. What is unique about a P3 contract is that it has some form of financial and quality assurance to protect taxpayers. For example, the private contractor, not taxpayers, are responsible for the all-too-familiar plea of "cost-overruns."

Had the upgrade to Winnipeg's waste water system been undertaken as a P3, it's unlike ratepayers would have been saddled with a 13 percent increase for sewer and water rates.

When the provincial government ordered Winnipeg to improve its waste water system, the original price tag was around $900 million. But a report submitted to city council shows that price tag has ballooned to $1.3 billion and could go as high as $1.8 billion. The West End Water Pollution Control Centre project, alone, is running $12 million over budget. Let's hope the city's auditor, now pouring over documents trying to figure out why the project has gone so far over budget will prevent history repeating itself with the remaining upgrades.

To be sure, P3s have their critics. Some have an ideological bend against the private sector building public projects. Other raise concerns about a lack of transparency in the tendering process. The CTF agrees with the latter concern and recommends when any government enters into a P3 arrangement, the private contractor is told the contract will be subject to public disclosure. Under Manitoba's Freedom of Information and Protection of Privacy Act (FIPPA), third parties are protected under a confidentiality clause. This has the potential of undermining transparency and accountability when it comes spending taxpayers' money. Nevertheless, this does not prevent the city from requiring a full disclosure provision in any such contract.

As construction cost overruns plague taxpayers for most public works projects, it is important that all politicians demonstrate leadership to protect taxpayers from ballooning price tags. It is safe to say city hall recognizes this problem and civic politicians deserve credit for finding alternatives. Since the city has wisely committed to not borrow money for new capital projects, P3s are planned for two other police stations, upgrading the Disraeli Bridge and expanding McGillivray Boulevard.