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Confederation Bridge Case Study

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The Confederation Bridge was constructed and financed through a public private partnership (PPP) between the government and private contractor. This type of partnership allows for increased project efficiency, reduced change order costs, as well as mutual financial benefit.
In 1988, a request for proposal on the bridge construction was put in place and Strait Crossing Development Inc., PEI Bridge Ltd and Borden Bridge Company Ltd were selected from seven prequalified corporations based off of environmental, engineering, and managerial skills. Finally, in 1993, after a series of environmental reviews, the government signed a contract with Strait Crossing Development Inc. It was agreed upon that SCDI would receive an annual subsidy of $41.9 …show more content…
BOOT is a public-private partnership project delivery method in which a private organization conducts a large development project under contract to a public-sector partner. Typically, the BOOT method is formed when a public partner forms a contract with a private organization to design and build a large project. The public sector does supply some funding for the for the project, however most of the cost of planning, constructing, operating and maintaining of the project is the responsibility of the private organization. Once the construction has finished, the developer is able to charge customers for using that infrastructure, for only the agreed upon time frame as stated in the contract. After that time, the private organization will transfer the ownership to the public sector. The Confederation Bridge is an example of this type of agreement. The bridge was built, owned and operated privately to Strait Crossing Development Inc. This will continue for 35 years prior to completion, as agreed upon in the contract, however, the bridge will transfer to the government after that time period. Some benefits of using the BOOT structure, is that it encourages private investment and increases chances of completing the project within the time frame and planned

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