The Design-Build-Finance-Operate-Maintain (DBFOM) model is the most comprehensive P3 model as it transfers the most risks from the public sector to the private sector.
In a DBFOM agreement, the private sector partner assumes responsibility for the full life cycle of the infrastructure – from design and construction to maintenance, rehabilitation and the delivery of services to Canadians – and finances the cost of the project on its own. The infrastructure is operated and maintained to a certain standard, set by the public sector owner, and the private sector partner is paid based on performance.
Projects that use DBFOM agreements:
- Saint John Safe, Clean Drinking Water Project, New Brunswick
- Communication Security Establishment Canada (CSEC) Long-Term Accommodation Project
The Design-Build-Finance-Maintain (DBFM) model transfers significant long-term risk from the government owner to the private sector.
Like a DBFOM, the private sector partner assumes responsibility for the full life cycle of the infrastructure – from design and construction to maintenance and rehabilitation – and finances the cost of the project on its own. The infrastructure is maintained to a certain standard, set by the public sector owner and the private sector partner is paid based on performance.
Projects that use DBFM agreements:
Progressive P3s are a new evolution of the P3 model, which is currently being used in some jurisdictions in Canada, including municipalities.
Introduced in 2021 in Ontario, the Progressive P3 procurement and delivery model alters the procurement strategy of the P3 model to bring in a private partner earlier in the process. By bringing in a private sector partner during the early design phase of the project, both sides work together to define project requirements, design, pricing and risk, before entering into a final P3 project agreement.
This model is currently being used for hospital and other social infrastructure projects — where appropriate —based on the features of the project (size, complexity, physical or geographic constraints, etc.).
Projects that use Progressive P3 agreements:
- Weeneebayko Area Health Authority Redevelopment Project, Ontario
- Trillium Health Partners Broader Redevelopment Project – The Peter Gilgan Mississauga Hospital, Ontario
- The Ottawa Hospital – New Civic Redevelopment, Ontario
- Wetaskiwin Wastewater Treatment Facility, Alberta
A concession P3 can include the same components as other full life cycle P3s, such as DBFOMs and DBFMs. However, the private sector partner also receives revenue or partial revenue from the asset. The revenue is generated from a service provision, such as a toll on a highway.
In some cases, the revenue generated by the asset may not be sufficient to fully repay the private sector partner or the risk may not be fully transferred. Therefore, some government payments may still be required.
Projects that use Concession agreements:
- Confederation Bridge, Prince Edward Island
- Autoroute 25, Québec
- Autoroute 30, Québec
- 407 ETR, Ontario