Canadian Government Agencies Will Partner to Drive Modernization, According to IDC

TORONTO, November 5, 2004 � Canadian government agencies will increasingly turn towards Public Private Partnerships (PPP) as a modern solution to the social, economic, and demographic pressures that challenge the delivery of public services. A recent IDC Canada study outlines how government agencies in Canada can successfully leverage these unique partnerships to modernize and ultimately improve the level of service they provide to the Canadian public.

�Governments will continue buying basic products in the traditional way, but, as they continue to modernize, agencies will need more compelling tools to carry out long-term strategic transformations,� notes Massimiliano Claps, senior research analyst at IDC Canada.

Public Private Partnerships are long term strategic collaborative ventures aimed at supporting the delivery of public services. PPP�s have become a widely used tool to overcome the constraints in traditional relationships between governments and suppliers and support the long term modernization of the Canadian public sector.

IDC Canada indicates that federal government projects in the form of PPP will grow from C$1billion in 2004 to more than C$2billion in 2008. Provincial government projects will nearly double between now and 2008, rising to over C$3billion. Municipal government spending will grow fastest, from C$660million in 2004 to almost C$1.8billion in 2008.

Clear definition of each project’s objectives, governance and transparency, and selection of partners will be of paramount importance to succeed in PPP.

The IDC Canada study, How to make public private partnerships successful in the Canadian government sector (IDC #CA021OGL, October, 2004) describes government experience with Public Private Partnerships and identifies the future growth of PPP by level of government and by type of project. The study also identifies drivers and barriers to growth of PPP and provides valuable insights on how to tackle those barriers.

For more information or to purchase a copy of this report, contact Craig Bator of IDC Canada at 416-673-2224 or cbator@idccanada.com