The Okanagan Mainline Municipal Association has told Kelowna city council that building a new bridge through a P3 will cost the city more than through public financing.
The association highlights that the province, with its triple-A rating, can borrow long-term loans at 5.37 per cent while a private company with an A-plus rate pays a higher interest rate at 5.91 per cent.
The association warns that the provincial government doesnt want the bridge to appear as a public debt and is therefore going ahead with a P3 even though it costs more. Lets be up front with it the debts still there. Its facade accounting, says association chair Ron Cannan.
The association highlights that the province, with its triple-A rating, can borrow long-term loans at 5.37 per cent while a private company with an A-plus rate pays a higher interest rate at 5.91 per cent.
The association warns that the provincial government doesnt want the bridge to appear as a public debt and is therefore going ahead with a P3 even though it costs more. Lets be up front with it the debts still there. Its facade accounting, says association chair Ron Cannan.