Public-Private Partnership

Learn about public-private partnerships (P3s) in Canada — what they are, how they work, and why they’re used for infrastructure projects.

Public-Private Partnership

August 01, 2025


What is a Public-Private Partnership?

A public-private partnership (P3) is a collaborative arrangement between a government agency and a private-sector company to finance, build, and operate infrastructure projects or deliver services.

Why Public-Private Partnerships Matter in Real Estate

In Canadian real estate and infrastructure, P3s help governments leverage private capital and expertise to complete large-scale projects efficiently.



Key features:
  • Shared risk and responsibility between public and private partners
  • Long-term contracts outlining performance standards
  • Used for transportation, hospitals, schools, and utilities



Understanding P3s helps developers and municipalities explore financing and delivery models for major infrastructure needs.

Example of a Public-Private Partnership in Action

The city entered a public-private partnership to build and operate a new light rail transit line.

Key Takeaways

  • Combines public oversight and private investment
  • Used for major infrastructure and facilities
  • Shares risks and rewards between parties
  • Requires detailed, long-term agreements
  • Can accelerate project delivery and innovation

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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