Skip to main content

Posts

Showing posts with the label Chutzpah

P3 corporations give award for crap financing deal

Nouveau CHUM The Canadian Council for Public Private Partnerships has honoured the Centre hospitalier de l'Université de Montréal (CHUM), the Collectif Santé Montréal (CSM) and Infrastructure Québec with its 2012 "Gold Prize" for financing construction of the new CHUM. Nouveau CHUM Apparently, the award goes for the project with the worst financing.  As   Luc Fouquette, the Collectif's General Manager said, "This funding is also the very first for a PPP project in  Canada  with a BBB rating (BBB+ by DBRS and Baa2 by Moody's)."  P3 financing is among its worst attributes, costing the public billions in extra expense compared to public financing.  The BBB credit rating is a new low  for P3 financing.  Every single P3 that has been broadly marketed so far in Canada has enjoyed an A-level rating -- until this deal came along.     Nouveau CHUM This will add even more costs for taxpayers.  Investors, in contrast, should see a nice return.