In an interview published recently in Canadian Lawyer, Davies partner Greg Southam speaks about the growing role that political risk is playing in Canadian infrastructure projects.

Greg doesn’t believe Ontario‘s recent change in government will upend too much on the infrastructure front; in fact, it could be a boon for public-private partnerships. “Ontario is a pretty stable market for these types of procurements,” he says, and he expects the province to continue down the P3 path. However, he adds that shifting political winds have resulted in some infrastructure markets moving away from design, build, finance and operate toward design, build and finance, as governments decide to retain operations.

Greg points out that “with so much private money out there that needs to get placed,” he doesn’t see a dampening effect on infrastructure projects any time soon. When it comes to projects with a national interest, however, he believes the government has lost some willpower to push such projects forward. “The national interest card hasn’t been played as much as it should be,” he says.