by Freya Keddie (published in the Hillside-Quadra Community News - Spring 2008)

Most Canadians take water for granted, assuming that it will always be there, and that funding for water is of the highest priority for both our federal and provincial governments. But much of the infrastructure that has served communities so well now needs replacing, and both senior governments plan to address this "infrastructure crisis" by steering cash-strapped municipalities towards Public-Private Partnerships (P3s).

(In July 2006 the Provincial Government ordered the CRD to treat its sewage, mandating that it consider “alternative financing and delivery options” (P3s) in order to secure provincial funding.)

The private sector has always played a key role in the provision of public infrastructure, usually through design-build contracts or design-bid-build processes. This is the “traditional” approach. P3s, however, go a step further, with multi-decade contracts to manage and operate waterworks.

A Simpler Explanation
Let’s say I’ve decided to paint my house. I decide on the colour and when to get it done. Then I get estimates from contractors and choose a company. They do the job, give me some tips on upkeep and that’s it. I DON’T invite the painter in to run my household afterwards! But that’s exactly what happens with a P3.

Do P3s save money?
Not necessarily. In 2007, an independent study for the Federation of Canadian Municipalities concluded that "…there is no evidence to suggest that P3s consistently cost less or provide better services than traditional public projects.” According a new study by Food and Water Watch in the USA, which compared average water rates charged by publicly and privately owned utilities in four states (California, Illinois, Wisconsin, and New York), privately owned water utilities charge customers anywhere from 13 percent to almost 50 percent more than their publicly owned counterparts.

Democracy Suffers
As soon as a municipality begins looking at P3s – before any contract is signed – important details about the project are deemed to be “proprietary information” and are hidden from the public. Once a contract is signed, private companies can hold meetings behind closed doors; they need only comply with the terms of the contract, and many communities have had difficulties monitoring contracts.

Of note: A P3 contract becomes an asset of the company. Ownership of Hamilton's P3 sewage contract changed hands so often it was sometimes unclear who owned it. Hamilton’s sewage treatment is now back in public hands.

“Back-Door” Water Privatization
Canadians overwhelmingly support public water, so water corporations sneak in through the back door, seeking less controversial P3 wastewater contracts in the hopes of paving the way for privatized water. A February 2007 poll, however, found that CRD residents overwhelmingly support public sewage treatment.

Water Privatization Hurts the Poor Most
As seen in the recent film FLOW: For Love of Water, the poorest in the developing world are routinely cut off from life-giving water when they can’t pay private-company rates.

Water privatization changes citizens into customers, and if you don't have money, you can't be a customer.

Freya Keddie was the recipient of the 2008 World Water Day Award from the Greater Victoria Water Watch Coalition