What are the details of this initiative?
Government will construct a large number of new schools at one time. This new approach to building schools will result in the construction of more schools, more quickly and at a reduced cost to taxpayers. Government will consolidate the design and construction of 18 new schools. The contractor will design, build and maintain the new schools using a public-private partnership (P3) model. The pilot project criteria includes K-4, K-6 and K-9 school configurations only.

What are the advantages of consolidating the construction of schools?
Consolidating the construction of schools can help government meet enrolment needs and deliver a large number of schools sooner. New schools can be built sooner in communities that need them, and students will no longer need to be bused to other communities.

Why is government using a P3 approach to school construction?
Public-private partnerships (P3s) will provide value and save money by having one group of contractors design, build, finance and provide maintenance for several schools at once, resulting in efficiencies of scale. P3 projects also provide a guaranteed price and completion date with a 30-year warranty. Payments to the contractor are over the span of 30 years and depend on availability and performance. If the contractor does not perform, they cannot pay the lender. The lender ensures the contractor looks after the school for the full 30 years.

How can consolidating school construction provide cost savings for Albertans?
Consolidating school construction can provide cost saving through economies of scale. The cost of building one school at a time is higher than the cost of building 18 schools at once. There are design cost savings by using a standard core school design, and there are savings when using contractors to manage workforce availability over a number of construction sites. There is also the cost savings of providing a large number of schools in three years, rather than waiting over a longer period of time.

How can P3 financing provide cost savings for Albertans?
P3 school projects provide a fixed price. This means that the province is protected from cost escalation. Although the Government of Alberta can negotiate better financing rates than private industry, P3 school construction can provide greater cost savings for taxpayers through efficiencies in design, construction and maintenance over 30 years.

Why is government taking over responsibility of school boards to build schools?
Government is looking at the most effective way to build a large number of schools quickly and at a reduced cost to taxpayers. The province is in the unique position to assist school boards in consolidating the construction of a large number of schools. The province will work closely with and consult with school boards to ensure the school facilities meet the needs of teachers and students.

Who will own and operate the new schools?
The new schools will be owned, controlled and operated by the school boards. Use and access to the new schools would be managed like existing schools.

Will private industry lease schools to the province?
No. Alberta is not considering any lease arrangements. All new schools will be owned, controlled and operated by school boards.

Will the construction quality be a problem?
All schools will meet provincial standards and will be built to achieve LEED (Leadership in Energy and Environmental Design) Silver certification, an independent rating system used to measure environmental efficiency. The new schools will use a standard core school design, including a common core of administration offices, library and gymnasium.

What is a core school design?
Core schools are designed with a permanent central space that includes a gymnasium, library, administration offices, classrooms, specialty classrooms, such as a music room, art room and Career and Technology labs. In response to changes in enrolment, steel-framed modular classrooms can be added and removed as required.

With the high price of oil and gas, why does Alberta need to consider P3?
Although Alberta spends four times the average per capita of other provinces on capital construction, we continue to have infrastructure pressures that cannot be accommodated within the current Capital Plan. There is a need for more new schools and innovative financing options. P3s allow us to deliver an effective, innovative solution to our infrastructure needs.

Will the project look at residential developers providing schools in new subdivisions?
No. Residential developers are not included in this pilot project. Alberta Education is investigating this option in new developments. The current project is looking at new schools in communities where students live and learn.

Why help private industry make profit on school construction?
Private for-profit firms currently design and construct schools.

There have been variable P3 successes in other jurisdictions. How are we going to avoid the problems they have had?
We are building on the lessons learned by other jurisdictions. There are examples of successful P3 school models and we looked at why others were not successful.

Why not stay the course and just build two or three schools right now?
Efficiencies through a P3 model can be achieved, which conventional funding would not be able to achieve in the major metropolitan areas. This is a benefit to taxpayers. Conventional funding is still a legitimate option for areas that may not gain efficiencies in the consolidated approach.

Will the school design include non-educational partner space?
No. This pilot project will accommodate student learning spaces only.

How was the school sites selected?
The school site locations were determined in consultation with the four school boards represented in this P3 pilot project.

Will these new schools reflect the Class Size Initiative?
The government remains committed to the class size initiative. Funding for the small class size initiative is now in its fourth school year and is an ongoing financial commitment by government to school jurisdictions. When it comes to class sizes, schools and school boards have the flexibility in classroom organization that supports parent and student educational choice. This means that some classes will be higher and some will be lower than the recommended averages. Government does not specify a maximum class size because there are no "one size fits all" solutions. P3 schools will be complemented by modular classrooms, which will allow jurisdictions to increase or decrease capacity if student enrolments fluctuate.

What’s the difference between school space used by a community group through a joint-use agreement and leasing space to a non-educational partner?
Joint-user space is usually on a temporary basis. Leasing of space is much more permanent and long term due to the established renter/owner relationship for the entirety or duration of the lease.

Will school boards have the option to lease school space to non-education stakeholders?
No. The P3 core school design, for the purpose of this pilot project, will provide educational space for students. This does not preclude school boards from providing access to the facility by local community groups through the traditional joint-use partnership agreement.

Why will school boards not have the option to lease space?
The intent of the core school design is for the facility to expand and contract as the student population increases and decreases through its lifecycle. Consequently, there would not be excess space available for leasing as the facility would continually be ‘right sized’ for the number of students it serves. Also, a lease presents serious implications for the P3 contractor and the overall P3 contract. Lease space could compromise the proponent’s willingness to become involved and submit a bid. The overall P3 contract is with the government and not the school boards.