Contract Awarded for New Oakville Hospital Project

OAKVILLE, ON, July 29, 2011 /CNW/ - Infrastructure Ontario and Halton Healthcare Services today announced Hospital Infrastructure Partners has signed a fixed-price contract to design, build, finance and maintain the new replacement Oakville Hospital.

Today's announcement signifies that all contractual steps have been completed and construction will start in August 2011, beginning with work on site services. The project is expected to be completed by summer 2015.

The hospital project is a significant economic opportunity for suppliers and contractors in Halton Region and the Greater Toronto Area. At the peak of construction, Hospital Infrastructure Partners estimates more than 1,100 workers on site daily.

The New Oakville Hospital will be a state-of-the-art facility with a full range of health services including:

• complex continuing care;
• rehabilitation;
• renal dialysis;
• acute inpatient care;
• maternal child care;
• inpatient and outpatient adult and child and adolescent mental health;
• secondary and tertiary level programs.

The hospital will be designed and built to meet the Canada Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system, with a goal of achieving LEED Silver certification. LEED buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources.

The value of the contract with Hospital Infrastructure Partners in today's dollars is approximately $2 billion. Over the 30-year life of the contract, when adjustments for anticipated inflation are made, the contract value is $2.7 billion (nominal). The contract cost covers the design and construction of the facility, building maintenance, life-cycle repair and renewal, as well as project financing.

The New Oakville Hospital project underwent an open, fair and competitive procurement process and Hospital Infrastructure Partners submitted the proposal that delivered the best value for Ontario taxpayers, including the lowest cost.

Infrastructure Ontario and the Ministry of Health and Long-Term Care are working with Halton Healthcare Services to develop the new replacement hospital, which will remain publicly owned and publicly controlled.

Infrastructure Ontario is a Crown corporation dedicated to delivering some of the province's larger and more complex infrastructure renewal projects, on time and on budget; managing one of the largest real estate portfolios in Canada and providing real estate services, such as asset management and property and land management; and providing the public sector and not-for-profit organizations with long-term financing to renew public infrastructure.

Visit www.infrastructureontario.ca and www.newoakvillehospital.com for more information.

Quotes:

Honourable Bob Chiarelli, Minister of Infrastructure
"Today's announcement illustrates the government's commitment to investing in modern health care. This is a significant project for the residents of Oakville. By investing in our health care infrastructure, we are stimulating the local economy, creating jobs and building a stronger and healthier Ontario."

Kevin Flynn, MPP for Oakville
"This is a momentous occasion for healthcare in Oakville. With the contract now complete, our vision of a state-of-the-art hospital will soon begin to take shape and become a reality."

John Oliver, President and CEO, Halton Healthcare Services
"We are thrilled to have reached this milestone and look forward to moving forward with Hospital Infrastructure Partners. We are committed to building a new, modern healthcare facility which will enhance the high-quality programs and services we provide to the community. Our design team has developed a truly patient-centred environment that will use the latest advances in technology and provide the highest standard of care and services for our patients and their families. This project will absolutely transform hospital healthcare services in Oakville and the Region."

HOSPITAL INFRASTRUCTURE PARTNERS TEAM

Hospital Infrastructure Partners has signed a contract with Halton Healthcare Services to design, build, finance and maintain the New Oakville Hospital. The Hospital Infrastructure Partners team includes:

• Developer: Carillion Canada Inc., EllisDon Corporation, Fengate Capital Management Limited
• Design: Parkin Architects in joint venture with Adamson Associates Architects
• Construction: EllisDon Corporation, Carillion Canada Inc.
• Facilities Management: Carillion Canada Inc., EllisDon Corporation
• Financial Advisor: Fengate Capital Management Limited, Scotia Capital

Equity funding for the project will be provided by:

• Five infrastructure funds managed by Fengate Capital Management Limited (LPF Infrastructure Fund, OE Infrastructure Fund L.P., TCPP Infrastructure Fund L.P., Fengate Greenfield Infrastructure Fund L.P., and Toronto Electrical Workers Infrastructure Fund L.P.),
• Carillion Private Finance Limited; and
• EllisDon Inc.

The short-term bank facility will be financed by a syndicate of banks which include:

• The Bank of Nova Scotia
• Credit Agricole Corporate and Investment Bank
• Bank of Tokyo-Mitsubishi UFJ (New York Branch)
• Sumitomo Mitsui Banking Corporation
• National Bank of Canada
• Canadian Imperial Bank of Commerce
• Bank of Montreal
• Dexia Crdit Local S.A. (Canada Branch)

The long bonds are fully underwritten by Scotia Capital Inc. and National Bank Financial Inc.

Hospital Infrastructure Partners participated in an open, fair and competitive procurement process and submitted the proposal with the best value for Ontario taxpayers.

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SERVICES AND PROGRAMS AT THE NEW OAKVILLE HOSPITAL

Once construction is complete, the new hospital will be approximately 1.5 million square feet. This new facility will provide an increased capacity of up to 457 inpatient beds. Services provided in the new facility will include:

The design and construction of the new hospital will adhere to the guidelines and sustainability principles of the Leadership in Energy and Environmental Design (LEED) rating system. The building team's goal is to achieve a LEED Silver certification for its green construction practices. For instance, Hospital Infrastructure Partners will:

• use building materials with recycled and locally sourced products and divert 75 per cent of construction waste from the landfill;
• reduce the facility's indoor water use by 30 per cent by installing highly efficient plumbing fixtures including low-flush toilets, faucets and showers;
• minimize solar heat gain in the new facility by installing reflective roofing and double glazed windows;
• enhance occupant health by using of low emitting materials for adhesives and sealants; paints and coatings and carpets;
• design elements that respond to climate conditions including: prevailing winds, site orientation, seasonal sun paths and precipitation, surface water drainage and solar gain;
• integrate sustainable landscape elements including bioswales, storm water ponds, planting islands within parking areas along walkways to reduce the heat island effect;
• install large expanses of windows to enhance daytime lighting; and
• provide bicycle parking facilities to promote alternative means of access to the site.

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PROJECT COSTS OF THE NEW OAKVILLE HOSPITAL

The contract with Hospital Infrastructure Partners

Under the terms of the project agreement, Hospital Infrastructure Partners will receive annual payments from the province over a 30-year period. These payments cover design, construction, project financing and building maintenance for 30 years after construction.

The contract with Hospital Infrastructure Partners is for a fixed price of $2 billion in today's dollars to be delivered by a fixed completion date. The new Oakville Hospital will be delivered using Infrastructure Ontario's Alternative Financing and Procurement method. This method transfers most project risks to Hospital Infrastructure Partners.

For instance, the project agreement makes Hospital Infrastructure Partners responsible for any design issues, project management and sub-contractor coordination, increases in construction material prices and labour costs, schedule and project completion delays, and other related construction risks. In the past, these risks were the responsibility of the public sector.

The province's 30-year maintenance agreement with Hospital Infrastructure Partners will ensure that the physical components of this new facility - roofing structure, windows, floors, elevators, heating and cooling systems and other components - are kept in excellent working condition over the term of the agreement. Under the project agreement, if the building requires a new roof or a new boiler, the private sector replaces and pays for it. The public sector has built in a 30-year guarantee for these physical features.

Overall Payment to Hospital Infrastructure Partners

Over the 30-year life of the contract, the total payments to Hospital Infrastructure Partners, when adjusted for anticipated inflation, will be $2.7 billion. Annual payments to Hospital Infrastructure Partners are performance-based. Payments can be withheld if Hospital Infrastructure Partners does not meet the agreed-upon performance standards.

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