The Regina Pass is the largest transportation infrastructure project in Saskatchewan history. Here are a list of the frequently asked questions about the Bypass and how and why it is being built.
There are a number of companies that form this consortium. They are:
The Bypass begins on Highway 11 northwest of Regina and runs south to Highway 1.
It will then wrap around south of the city about 5km south of Highway 1 and be routed 400 metres east of Tower Road to connect back with Highway 1 on the east side of Regina.
The project will also include three overpasses at the Pilot Butte Access Road, Highway 48 at White City and Highway 46 at Balgonie.
In a snapshot, the project consists of approximately:
The Regina Bypass Project, and its various components, have been the subject of multiple planning studies going back to the 1990s.
These plans have been subject to exhaustive reviews by experts in civil engineering and transportation planning both internal and external to the Ministry.
The analysis consistently shows that the selected route is the optimal location for the Bypass now and into future.
MHI has undertaken significant stakeholder and public consultation, and there is consensus amongst industry and municipalities that this route makes the most sense.
The Regina Bypass will serve a number of road users by providing a high-speed route around the city.
Traffic volumes on existing roads in vicinity where the Bypass will be built range from about 11,500 to 25,000 vehicles per day.
When completed the bypass will:
Regina Bypass will develop and submit for review Traffic Control Plans for each stage of construction.
The Province will own the bypass.
No, the Province will own the Bypass.
Regina Bypass will operate the bypass according to the terms of the Project Agreement, which will ensure the bypass is being managed to a high standard.
Having Regina Bypass manage the maintenance and operations of the bypass will ensure the greatest savings for taxpayers.
With respect to roadways, maintenance and operations are highly integrated.
Having Regina Bypass manage the maintenance and operations of the bypass will ensure the greatest savings for taxpayers.
Regina Bypass will maintain the roadway according to the terms of the Project Agreement.
The contract will be for 30 years plus construction.
A P3 is a long-term performance-based contract between government and business to deliver priority public infrastructure such as schools, roads, bridges and health care facilities.
Alternative Approach
Public-private partnerships (P3) can help meet infrastructure needs in Saskatchewan.
Addressing the Infrastructure Gap
Governments everywhere are facing inadequate or failing public infrastructure – such as roads, bridges, highways and hospitals – with a limited ability to address the inadequacies in a timely manner with current resources.
Governments are recognizing that while they are the best bodies to set public policy and regulate performance, their traditional building approaches are not always the most efficient for large and complex infrastructure projects.
As a result, more Canadian governments are choosing to partner with the private sector to make strategic investments that foster innovation and achieve greater efficiencies.
Defining P3s
A P3 is a partnership arrangement in the form of a long-term performance-based agreement between the public sector (any level of government) and the private sector (usually a team of private sector companies working together) to deliver public infrastructure (hospital, school or bridge or highway, or a new government building) for citizens.
P3s in Saskatchewan
In a P3, taxpayers pay for the project, but only once the facility is built and ready to use, and then the payments are based on performance.
P3s must demonstrate that the public interest will be served and value for money can be achieved, otherwise a P3 does not proceed.
P3s must provide some mix of the following benefits in order to deliver good value to citizens:
Timely Delivery
By taking advantage of private sector financing, government can build the infrastructure that Saskatchewan needs when it is needed.
Risk Transfer
In conventional government construction projects, contractors regularly pass along cost increases from schedule delays and overruns on materials and labour and design specifications.
Government must also pay to repair problems with ongoing operations and maintenance.
In a P3 ─ especially those in which the private sector commits to maintain a new facility for a fixed period ─ the contractor, not government, is liable for those cost risks. If contractors don’t deliver, they don’t get paid.
Innovation
Private companies that are responsible for overruns have a greater incentive to innovate at every stage: through design, financing, construction methodology, and in maintenance and operations if included.
That innovation accounts for a good part of the overall savings and value to government and results in better products and services.
Maintenance and Renewal Period
The infrastructure will be maintained in good condition for the life of the agreement (typically 30 years).
The P3 agreement transfers maintenance of the infrastructure from the public sector authority to the private partner.
This effectively gives the public sector authority a 30-year warranty, with no deferred maintenance at the end of the 30 years.
Serving the Public Interest
In all projects, the government retains ownership, control and responsibility.
This is done by:
On its own, the Province can’t make all the necessary improvements to public infrastructure in a timely and cost effective manner that will provide the best value for taxpayers’ dollars.
SaskBuilds is pursuing partnerships that deliver major capital projects to meet public needs while transferring risk and saving money over projects delivered traditionally.
After determining the costs of building the bypass through a traditional approach, the government, through SaskBuilds and its expert external financial advisors, determined there are savings for taxpayers gained by using a P3 approach.
P3s can reduce the long-term costs and improve the quality of the infrastructure.
Looking at other P3 projects in Canada shows the total long-term cost of P3s is less than the total cost of traditional projects.
Private sector partners assume the risk of cost overruns – not the taxpayer.
Where there is value for money, P3s are the right approach for building large and complex infrastructure projects because they have a proven track record of delivering on-time and on-budget as well as delivering greater innovations that emerge through the competitive market process.