S9E205: Replicability of the Montreal REM Model with Riccardo Cosentino
In this episode of the Project Chatter podcast, hosts Val and Dale engage with Riccardo Cosentino to explore the unique aspects of the REM project in Canada, a public-private partnership (PPP) model that has garnered attention for its innovative funding and governance structure. Riccardo shares insights into the project's background, the role of the Quebec pension fund as a project sponsor, and the implications of risk management and return calculations. The conversation delves into the importance of early stakeholder involvement, the challenges of public opinion, and the potential for replicating this model in other sectors. Throughout the discussion, the significance of governance, long-term perspectives, and the necessary skill sets for project professionals are emphasized, providing valuable takeaways for listeners interested in infrastructure projects and PPPs. Takeaways The REM project is a unique public-private partnership model. Risk management is crucial in financing infrastructure projects. The obligation to repay investments can shift from taxpayers to private entities. Calculating returns involves considering ridership and land value capture. Contingency planning is integrated into the rate of return. Early involvement of stakeholders leads to better project outcomes. Governance structures can significantly impact project success. Long-term perspectives are essential for managing infrastructure investments. Curiosity and risk-taking are important traits for project professionals. The REM model could be applied to other sectors beyond transportation. Chapters 00:00 Introduction and Guest Background 03:24 Understanding Public-Private Partnerships (PPPs) 06:11 The REM Project Overview 08:56 Funding and Risk Management in the REM Project 11:55 Calculating Returns and Land Value Capture 14:33 Governance and Project Delivery 17:21 Long-Term Perspectives and Lifecycle Management 22:47 Changing Dynamics in Project Management 24:35 Governance and Change Management in Projects 26:38 Replicating Successful Project Models 29:08 Applying the Model Beyond Rail Projects 31:07 Reporting Mechanisms and Governance Structures 33:55 Skill Sets for Successful Project Delivery 35:39 Advice for Aspiring Project Professionals 37:27 Resilience in Today's Project Challenges 39:40 Future of the CDPQ Model and Its Replicability