08-15-2015, 10:14 AM
What sort of ROI would a BPM or similarly blue chip property developer and management company want?
I can't imagine the Region wanting to jump quickly into another large P3 project with ION not operational yet. The current P3 projects and feedback from Infrastructure Ontario shows a strong upward trend in operational costs with P3 projects -- the labour escalation in many seem to create a disincentive to negotiate in a hard nosed fashion, leaving the public partner to shoulder the high costs.
I may be prudent to see what happens with the P3 operational costs with ION before making any large commitments for another P3 project.
The province isn't Greece or California, but debt repayment is the third or fourth (depending on what unfunded liabilities one counts) biggest item on the budget. Healthcare isn't going to get any cheaper with our aging population, and I can't see the current majority government rolling back Education. With the focus on GTA infrastructure improvement, I don't see any sudden gifts of provincial largesse anytime soon for this project.
I can't imagine the Region wanting to jump quickly into another large P3 project with ION not operational yet. The current P3 projects and feedback from Infrastructure Ontario shows a strong upward trend in operational costs with P3 projects -- the labour escalation in many seem to create a disincentive to negotiate in a hard nosed fashion, leaving the public partner to shoulder the high costs.
I may be prudent to see what happens with the P3 operational costs with ION before making any large commitments for another P3 project.
The province isn't Greece or California, but debt repayment is the third or fourth (depending on what unfunded liabilities one counts) biggest item on the budget. Healthcare isn't going to get any cheaper with our aging population, and I can't see the current majority government rolling back Education. With the focus on GTA infrastructure improvement, I don't see any sudden gifts of provincial largesse anytime soon for this project.