P3 model not responsible for latest Valley Line LRT issues, Edmonton city councillor says
CBC
The public-private-partnership (P3) model is under scrutiny following the delay of the Valley Line Southeast LRT this week.
Edmonton Mayor Amarjeet Sohi is calling for a comprehensive review of how the city builds large projects, particularly how it pursues P3 projects.
Sohi made the comments Wednesday, when TransEd announced the $1.8 billion line from Mill Woods to downtown will not open this summer as planned.
In July, Inspectors discovered cracks in several concrete piers that support the elevated tracks. Engineers now have to figure out how to solve the issue.
Coun. Tim Cartmell said the P3 model is not responsible for the issues.
"Let's be really clear, this has nothing to do with the form of contract," Cartmell said in an interview Friday. "This is a design mistake."
Cartmell said a different kind of contract agreement wouldn't change the origin of the error — it's engineers design, inspect and sign off on projects.
"That's written into the Alberta building code. It's the same on every structure in the province."
In 2016, the city entered into the P3 agreement with TransEd, a consortium of companies created specifically to build the LRT.
Under the model, the contractor looks after designing, building, operating and maintaining the line. Proponents argue a P3 scenario takes a lot of the risk away from the government for problems and cost overruns.
The city owns the infrastructure but TransEd is responsible for operating the line for 30 years.
"P3s are fundamentally flawed for public transportation projects," Cartmell said.
Maintenance and operations present one set of challenges.
The Valley Line West LRT from downtown to Lewis Farms, now under construction, is a partial P3 where the city owns the vehicles and the group of companies builds and operates the trains.
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