{"id":904262,"date":"2026-09-21T16:02:15","date_gmt":"2026-09-21T16:02:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/904262\/"},"modified":"2026-09-21T16:02:15","modified_gmt":"2026-09-21T16:02:15","slug":"p3s-could-help-reduce-pressure-on-city-of-calgarys-finances-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/904262\/","title":{"rendered":"P3s could help reduce pressure on City of Calgary’s finances: report"},"content":{"rendered":"

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The condition of municipal infrastructure in Calgary is deteriorating rapidly, and public finances have not been able to keep pace. To address the situation, the city should turn to public-private partnerships, recommends the MEI in a new Economic Note<\/a>.<\/p>\n

\u201cThe financial capacity of public institutions and the taxpayers that fund them is not unlimited,\u201d says Gerard Lucyshyn, senior economist and vice president of Research at the MEI and co-author of the publication. \u201cTurning to public-private partnerships would reduce the burden on municipal finances and the taxes that fund them, without compromising services.\u201d<\/p>\n

In 2013, approximately two\u00a0per\u00a0cent of Calgary\u2019s infrastructure was classified as being in poor or very poor condition, according to City data. In 2026, that proportion has now reached 14\u00a0per\u00a0cent.<\/p>\n

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More than 20\u00a0per\u00a0cent of roads, sidewalks, and pathways are in poor condition. As for drinking water infrastructure, 10\u00a0per\u00a0cent is in poor shape.<\/p>\n

Maintaining municipal infrastructure in good condition will require significant spending, according to figures from the City of Calgary\u2019s Annual Financial Report.<\/p>\n

The needs for the next 10\u00a0years are estimated at $53.3\u00a0billion. Of that amount, $21.8\u00a0billion represents the expected cost for new infrastructure and $18.5\u00a0billion the cost of maintenance and replacement for existing infrastructure.<\/p>\n

In comparison, municipal revenues were $7.2\u00a0billion in 2025.<\/p>\n

\u201cWith $53\u00a0billion in needs and $7\u00a0billion in annual revenues, the numbers speak for themselves,\u201d noted Lucyshyn. \u201cBy leasing some infrastructure to private partners under the right conditions, the city reduces the financial pressure on Calgarians, while ensuring quality services.\u201d<\/p>\n

A public-private partnership (P3) is a collaboration between a government and a private company for the construction, financing, maintenance and\/or operation of public infrastructure. The government retains ownership of the assets, control over rates, and responsibility for quality standards, while the private partner is responsible for achieving specific results.<\/p>\n

Calgary has already demonstrated that this model works. Its first major P3 project, for a composting facility delivered in 2017, was completed on time and on budget. The City has had a formal P3 policy since 2008, policy CFO011, which enables this type of partnership.<\/p>\n

In another\u00a0publication\u00a0last year, the MEI highlighted that French roads under a concession system, whereby the government retains ownership and leases operations to a private partner, were 3.4\u00a0times less likely to be in poor condition than those managed exclusively by the public sector.<\/p>\n

For Calgary, the model simply needs to be used more systematically, notably in the drinking water sector, where more than 10\u00a0per\u00a0cent of infrastructure is in poor condition. The City will need to invest more than $5\u00a0billion in this area over the next 10\u00a0years.<\/p>\n

\u201cCalgary has the tools and has already experimented with the P3 model,\u201d concluded Lucyshyn. \u201cEvery year of inaction means another piece of infrastructure deteriorating and a growing bill for Calgary\u2019s citizens. It\u2019s time to take action.\u201d<\/p>\n

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