Issue link: http://clhia.uberflip.com/i/333350
14 APPENDIX LIST OF CLHIA RECOMMENDATIONS Enhancing the Infrastructure P3 Market in Canada 1. The CLHIA recommends that: • PPP Canada take the lead in developing, in close collaboration with key stakeholders, including provincial governments, life and health insurers and other institutional private investors, standardized P3 documentation for P3 projects under $50 million, and • Governments at all levels only invest in P3 projects under $50 million that are structured in alignment with the new standard as a means to lead market adoption of these new standards. 2. The CLHIA recommends that once a sufficient standardization of P3 documentation for smaller P3 deals has been implemented, PPP Canada and Provincial PPP agencies seek innovative ways to develop sufficiently large pools of smaller infrastructure projects, where appropriate, to attract institutional long-term investors. 3. The CLHIA recommends that Governments set a goal, over time, to seek to extend the term of P3 projects. We believe terms of 40 years would find support in the market, subject to the requirements for effective infrastructure maintenance provisions. 4. The CLHIA recommends that: • The Canadian Government lower the Building Canada Fund P3 screening threshold to $20 million, • All provinces in Canada put in place infrastructure agencies to promote and help support the use of P3 arrangements in their respective provinces, and • All provincial infrastructure agencies commit to conducting P3 screens of all provincial infrastructure projects in excess of $20 million that are seeking provincial funding. Increasing the Supply of "Ultra-long" Government Bonds 5. The CLHIA recommends that The Government of Canada make a sustained commitment to issue 50- year bonds in sufficient volume to achieve a benchmark level over the coming 5-year period. 6. The CLHIA recommends that: • All provincial governments make a commitment to reallocate from short-term issuance towards long-term (20 and 30 year) bonds, and • All provincial governments make a sustained commitment to issue 50-year bonds in sufficient volume to achieve a benchmarks level over the coming 5-year period.