This week alone, P3 Bulletin has reported the issue of four new potential deals to hit the North American market. Alongside this, we have also seen solid progress on various other deals, including a shortlist announcement on the high-profile George Massey Tunnel project in British Columbia and the Toronto courthouse.
But it is not just Canada enjoying a positive week. In the US, the Pennsylvania Department of Transportation (PennDOT) has also presented its latest plans for the Middletown Train Station P3 to over 60 industry delegates, with requests for qualifications (RFQs) due in December.
We are seeing an impressive amount of activity in the two countries right now – both of which were facing very uncertain times at the start of the year. However, based on the buoyancy of both markets at the moment, it appears that both the US and Canada have weathered their respective storms and look to not just be getting back on track but delivering solid growth.
The Canadian market in particular has responded very well to the change in landscape under the Liberal government – something that reflects the durability of the P3 space in the country. The level of acceptance and acknowledgment of the benefits of the model makes this possible and there is no reason to believe that Canada will now continue to thrive as a leader in P3s in the coming years.
The US too – despite treading new ground in its relatively formative P3 years – is progressing nicely. After drawing a line in the sand following the completion of previous market focal points, the Purple Line, La Guardia and Merced, the country is moving forward with a varied range of cross sector deals.
This has been reflected this week (in addition to the PennDOT plans) with two new RFQs in Texas for a rail and research facility project. The challenge now for the US will be to solidify this growth with real progress in its battle to deliver a social pipeline to support the list of transport deals that exists in the country.
Obviously, there are major hurdles for the US to still overcome. Unlike Canada , there is still a great deal of work to be done to win over powerful naysayers, but the way to do this is by building a pipeline and bringing new projects to market – something that the US is starting to do with relish.
Just creating new deals is not enough. They will need to be successfully brought to financial close in a timely and costly manner, which, traditionally, has been the stumbling block for the US.
But if the market can learn from recent successes and continue the current momentum, as is the case with its northern neighbors, growth is inevitable.