Panelists on Aboriginal P3s cast light on community concerns
By Jean Cumming
P3s involving aboriginal communities require customized approaches, according to panelists at the Canadian Council for Public-Private Partnerships conference in November. The panel, which was moderated by Torys LLP partner Mark Bain, highlighted the critical need for infrastructure, new P3 models, and approaches that “maximize the benefits for Aboriginal communities and offer an attractive package for private-sector bidders.”
Panelists broached several of the issues that need to be taken into account in order to institute effective Aboriginal community P3s. These include a “fear of the unknown” among many members of First Nations communities, said Irving “Bing” Leblanc, the Assembly of First Nations' Associate Director, Housing, Infrastructure and Emergency Issues.
Also challenging are the two-year election cycles for First Nations chiefs, which are antithetical to long-term projects, noted various panelists including Sara Filbee, Assistant Deputy Minister, Lands & Economic Development at Aboriginal Affairs and Northern Development Canada. (Other panelists did point out, however, that longer tenures for First Nations leaders are becoming increasingly common.)
Even more significant than the term-length issue is the drastic level of need within First Nations communities. Leblanc pointed out the need for water and wastewater facilities, while Jeffrey Frank, President of Quilcene Consulting, noted the need for schools. Meanwhile, as Filbee said, the federal government is operating in a climate of “fiscal restraint” that isn't likely to change any time soon.
Against this challenging backdrop, Heenan Blaikie LLP partner Michael Ledgett presented a prototype model for a water and wastewater utility P3 within a First Nation. This model appears to owe much to the Crown corporation approach in Canada; however, Ledgett carefully delineated roles for the First Nation, federal government and private sector — a novel framework. Ledgett told Lexpert the model evolved from his and his firm's work with the Canadian Council for Aboriginal Business, and has been “road-tested” at two roundtables in the Aboriginal business community.
Ledgett said the private sector's expectations for Aboriginal partnership agreements include a project contract quantum that is high enough to make it worthwhile and a term that is long enough to account for ongoing updating and maintenance. Companies also expect a predictable and reliable regulatory framework, procurement process, government funding and contract oversight.
Ledgett's presentation covered several aspects of a framework by which the federal government would provide financial oversight and First Nations communities would contract with a regional water/wastewater utility company for services. For the model to work, it was clear that engaged leadership and satisfactory responses to First Nations community aspirations and needs would be crucial to success.
Jean Cumming is the editor-in-chief of Lexpert.
By Jean Cumming
P3s involving aboriginal communities require customized approaches, according to panelists at the Canadian Council for Public-Private Partnerships conference in November. The panel, which was moderated by Torys LLP partner Mark Bain, highlighted the critical need for infrastructure, new P3 models, and approaches that “maximize the benefits for Aboriginal communities and offer an attractive package for private-sector bidders.”
Panelists broached several of the issues that need to be taken into account in order to institute effective Aboriginal community P3s. These include a “fear of the unknown” among many members of First Nations communities, said Irving “Bing” Leblanc, the Assembly of First Nations' Associate Director, Housing, Infrastructure and Emergency Issues.
Also challenging are the two-year election cycles for First Nations chiefs, which are antithetical to long-term projects, noted various panelists including Sara Filbee, Assistant Deputy Minister, Lands & Economic Development at Aboriginal Affairs and Northern Development Canada. (Other panelists did point out, however, that longer tenures for First Nations leaders are becoming increasingly common.)
Even more significant than the term-length issue is the drastic level of need within First Nations communities. Leblanc pointed out the need for water and wastewater facilities, while Jeffrey Frank, President of Quilcene Consulting, noted the need for schools. Meanwhile, as Filbee said, the federal government is operating in a climate of “fiscal restraint” that isn't likely to change any time soon.
Against this challenging backdrop, Heenan Blaikie LLP partner Michael Ledgett presented a prototype model for a water and wastewater utility P3 within a First Nation. This model appears to owe much to the Crown corporation approach in Canada; however, Ledgett carefully delineated roles for the First Nation, federal government and private sector — a novel framework. Ledgett told Lexpert the model evolved from his and his firm's work with the Canadian Council for Aboriginal Business, and has been “road-tested” at two roundtables in the Aboriginal business community.
Ledgett said the private sector's expectations for Aboriginal partnership agreements include a project contract quantum that is high enough to make it worthwhile and a term that is long enough to account for ongoing updating and maintenance. Companies also expect a predictable and reliable regulatory framework, procurement process, government funding and contract oversight.
Ledgett's presentation covered several aspects of a framework by which the federal government would provide financial oversight and First Nations communities would contract with a regional water/wastewater utility company for services. For the model to work, it was clear that engaged leadership and satisfactory responses to First Nations community aspirations and needs would be crucial to success.
Jean Cumming is the editor-in-chief of Lexpert.
