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Green bonds help fund Vancouver island hospitals

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July 16, 2014 by STAFF REPORT

A $606 million project to build two LEED gold certified hospitals in North Vancouver Island, B.C. is underway. 

The North Island Hospitals Project will meet energy and greenhouse gas emission targets under the B.C. Climate Action Plan.  “Green” bonds (see below) are helping with project costs, which is a first for a public-private infrastructure project in North America.

The project will consist of building two acute care facilities:  a 153-bed hospital in Comox Valley and a 95-bed hospital in Campbell River. The new hospitals will include approximately 72,000 sq. m of space and deliver numerous health care services, such as emergency care, maternity services, ambulatory care programs, diagnostic imaging (including MRI), surgical and endoscopy services, cardio-pulmonary diagnostic services, and mental health and addiction programs.

The Tandem Health Partners consortium of Connor Clark & Lunn GVest Traditional Infrastructure, Balfour Beatty Investments, Graham Design Builders, Gracorp Capital Advisors Ltd., Honeywell International Inc. and Balfour Beatty Communities will oversee the project’s design, build, finance and maintenance. The consortium has signed a contract with the Vancouver Island Health Authority for a 30-year operating term.

Construction of the new hospitals will be complete by May 2017.

What are green bonds?

Federally qualified organizations and/or municipalities can issue a tax-exempt bond to develop brownfield sites. Brownfield sites are areas of land that are under utilized, have abandoned buildings, or are under developed. They often contain low levels of industrial pollution. Green bonds are shorthand for Qualified Green Building and Sustainable Design Project Bonds. (Source: www.investopedia.com/terms/g/green-bond.asp)