06-25-2015, 08:48 PM
(06-25-2015, 08:25 PM)numberguy Wrote: It's important to do scenario/what-if analysis.
Absolutely. If the people negotiating these contracts don't do decent an analysis ...
(06-25-2015, 08:25 PM)numberguy Wrote: Empirically, P3 annual cost increases in Ontario are tracking up far faster than non-P3 projects.
The issue I have is that P3 seems to be a way to get market alpha/return with government level beta/risk. It's a guaranteed win for the private partners.
... then they will sign bad contracts. And in that scenario I cannot blame the private company, profit is their goal after all, I will blame the government in question for not negotiating a better contract.
But even if the LRT contract has excessive escalations, ION can still work well. It'll just be more expensive than it should be.
P.S. I saw the sign, too. I was tempted to make a better one for them ...