Public Private Partnerships could be in trouble with the current financial crisis.
The Vancouver Sun has published an article which shows several of BC’s privately financed public infrastructure projects are connected to international lenders who are facing serious problems.
The new Fort St. John Hospital is one of those projects. The plan is to start construction on the new hospital this year with it being completed by 2011. The Vancouver Sun says one of the initial equity partners in one of two consortiums, Babcock had to be bailed out by a company called Bilfinger Berger.
Babcock is an Australian based investment firm, that saw 98 per cent of its market value disappear because of the credit crunch. On January 8th the company temporarily halted the trading its stock.
In the second consortium a South African investment bank Investec is involved in a multi-million-dollar lawsuit. The lawsuit alleges wrongdoing in the selling of shares by an associated company whose CEO was later murdered.
For more on this story Click Here and read the full article from the Vancouver Sun