Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBOM Partially Public Finance
# of Projects: 1
100% of the Results

Background informationProject Created: May 11, 2011

Project Name: Abbotsford Regional Hospital and Cancer Center
Year in Operation: 2008
Sector: Buildings
Subsector: Health Care Facility
Status: In Operation
Type: New Facility
Description: The original health care facility, the Matsqui-Abbotsfor-Sumas (MSA) Hospital, was built in the 50s and was last renovated in 1980. The age and condition of the facility prevented it from being cost-effectively upgraded or expanded, so a decision was made to completely replace it. Therefore, the project involves the design, construction, finance, operations, and maintenance of a new facility and cancer center that incorporates new technology and equipment to serve the growing needs of the population and community in the Fraser Valley area. The design was required to be flexible and capable of expanding both horizontally, vertically, and technically to serve future needs. The facility is 60,000 square meters and includes 300 hospital beds.
Delivery Method as described in the country where it's located: Public Private Partnership
Is the project still active: Yes
Comments: The project is being delivered under a Design-Build-Finance-Operate-Maintain Contract with a 30 year O&M term

Project Locations

Address: 32900 Marshall Rd
City: Abbotsdford
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Access to Land: The ownership of the site and facility remains with the public sector sponsoring the project. However, the concessionaire is granted a non-exclusive license to construct, manage, and operate the facility from the date of the project agreement to the end of the 30 year project term. The concessionaire also has rights to provide patient entertainment and two areas of retail space, and may also propose other future commercial opportunities subject to the public owners approval.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): The PPP Concessionaire for the project (Access Health Abbotsford, AHA) will receive annual service payments in monthly installments from the public sponsor/owner (The Fraser Health Authority, FHA, and the Provincial Health Services Authority, PHSA) for 30 years commencing at substantial completion. A portion of the service payment is for the provision of food services, laundry and linen services, and facility maintenance. The remainder of the payment is for the repayment of the design, construction, and financing the majority of the capital costs for the project. These payments are based on Concessionaire performance and incorporates incentives for high performance and deductions where performance does not meet contract requirements. To determine the level of performance, quality satisfaction surveys will be used to obtain feedback from patients, visitors, medical staff, and health authority staff.
Checkbox Checked Environmental Clearance: The project was designed to meet LEED Silver Standards.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The Fraser Valley Regional Hospital District (RHD) and the Fraser Health Authority (FHA) are the public sponsors for the project.

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Checkbox Checked

Direct Cash Support: The RHD is contributing $71 million to the capital costs and the FHA $4 million. These funds will be invested in the construction process only and will be flowed to the concessionaire on a quarterly basis during this phase of the project.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: The financing arm of the PPP concessionaire, ABN AMRO bank (one of the world’s largest financial institutions) is partially financing the project through the issuance of bonds, which escalate at a fixed percentage over time.

Checkbox Checked

From Producers as Equity: ABN AMRO is also providing the remainder of the financing through an equity investment.

Project Delivery & Finance Method

Project Delivery:
All Public Finance. Public Sponsor contracts for initial design, and separately contracts for initial construction. Public Owner operates and maintains the resulting facility.
Is there an independant checking engineer? Yes
Project Finance Method: All or Partially By Public Sponsor

Procurement Approach

Project Component
Qualifications
Based Selection
Request for
Qualifications
Request for
Proposals
Invitation
for Bids
Unsolicited
Proposals

Term for Key Components & Forms of Contract

Project Component
Years
Quarters
Combined Term: Initial Design, Construction, O&M Period
33
2
Forms
Description
Other
Partnerships BC Project Agreement 

Project Value (If and As Known)

Date of Estimated Project Value: May 11, 2011
Project Value
Hard Cost
Hard & Soft Costs
Construction
$250 Million - 1 Billion US
(none)
Operations & Maintenance
$500 Million - 2 Billion US
(none)
Total
$500 Million - 2 Billion US
(none)

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