Quote:
Originally Posted by fredinno
PPP isn't government debt. If government doesn't have a share in the company, the risk is placed to the public sector. Thus the government gets no debt, and the company that faced that risk is the one who pays up the debt.  |
I haven't read the Canada Line or Port Mann bridge contracts, but it's my understanding that the province guarantees them a minimum income. When the Port Mann is in the news for losing $### million last year, that means Translink is paying the P3 group that amount of money.
It really is the province on the hook, and paying a premium to go through a front man.
If we don't, or can't should the contract forbid it, allow a P3 project to go bust then of course they will spend as much as possible.