Canada PPP state of the market – November 2017

06 November 2017 - 12:00 am UTC

To coincide with the Canadian Council of Public Private Partnership’s 25th annual conference, Inframation has released a state of the market report on the Canadian PPP market.

The value of deals to reach financial close in 2017 to date is CAD 2.09bn, the lowest since the CAD 1.42bn recorded in 2006. The nine deals to reach financial close in 2017 have been in social (4), environment (3) and transport (2) sectors. Of the nine, seven were in Ontario and the two in British Columbia. The small capex size of the nine deals has meant that loans are set to be at their lowest level since 2012 and capital markets since 2006. The small capex for build-finance or designbuild-finance deals as well as their increasing prevalence in the market suggests that equity deployment for 2017 is likely to come in at a sub CAD 50m value for the first time since 2006. However, major procurements such as Finch LRT, Hurontario LRT, Hamilton LRT, Ottawa Stage 2 LRT, the Gordie Howe Bridge, Toronto Courthouse and Union Station Enhancement could see the 2018 capex figures top the CAD 10bn mark once again.
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