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P3 model saves SaskBuilds $90M on hospital project


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December 18, 2015 by STAFF REPORT

Using a P3 model to build the Saskatchewan Hospital North Battleford project will cost $90 million, or 18 per cent, less than a traditional model, according to a new report from Ernst and Young.

Century-old Saskatchewan Hospital will be replaced with a new facility built by Graham, Carillion.

A total investment of $407 million is being made in the new facility including the cost of design, construction, private financing, and more than 30 years of maintenance to ensure it remains in like-new condition.  EY’s report confirms the same project would have cost $497 million if it was delivered through a traditional approach.

“Ernst & Young’s report is more evidence that governments should keep an open mind to P3s,” SaskBuilds Minister Gordon Wyant said.

“The report confirms one big reason we chose a P3 – to make sure project risks, whether it’s bad weather or material shortages – won’t delay the opening.  Savings are important, but most of all, this project is about better care for patients,” Environment Minister and Battleford’s MLA Herb Cox said.

In summer 2015, Access Prairies Partnership (P3 team) started construction on the new facility.  The team includes Graham Design Builders LP, Carillion Canada Inc., Gracorp Capital Advisors LP, Carillion Private Finance Ltd., Kasian Architecture Interior Design and Planning Ltd., WSP Canada. It is estimated the project will create more than 1,500 construction jobs in Saskatchewan.

The facility will consist of 188 beds replacing the current 156-bed facility and 96 secure beds for male and female offenders living with mental health issues.  The two populations will remain separate, as will their programming and treatment.  This is an innovative approach for delivering mental health care and supports to two separate groups of people with significant psychiatric rehabilitation needs.

Construction is expected to be complete by spring 2018.

The community can track the progress being made by viewing the construction site webcam online24 hours a day, seven days a week.

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