Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBFOM All Private Finance
# of Projects: 1
100% of the Results

Background informationProject Created: May 23, 2011

Project Name: Gordon and Leslie Diamond Health Care Center
Year in Operation: 2006
Sector: Buildings
Subsector: Health Care Facility
Status: In Operation
Type: New Facility
Description: The project involves the design, construction, finance and operation of a new health care facility in Vancouver. It was the Province’s first public-private partnership involving the construction and operation of a large, integrated health care facility. The health care center is 365,000 square feet and supports several hundred medical students, 600 medical professionals, and an estimated 600,000 patient visits annually. The facility is used for outpatient care services including specialty clinics, medical education, physician practice offices, research and related commercial/retail activities.
Delivery Method as described in the country where it's located: Public Private Partnership
Is the project still active: Yes
Comments: The project is governed by a Design-Build-Finance-Operate-Maintain Contract with a 30-year term.

Project Locations

Address: 855 West 12th Avenue
City: Vancouver
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The new facility was constructed on land previously owned by the Province. It replaced several older buildings scheduled for demolition on the Vancouver General Hospital site. Therefore, no additional Right of Way or easements needed to be purchased to support the project.
Checkbox Checked Access to Land: The contractor, Access Health Vancouver (AHV), will be licensed to fully access the site during construction. Once construction is complete, AHV will enter into a 30-year lease with the VCH for the facility. VCH will then lease back all but approximately 14,000 SF allotted for hospital-related retail or commercial facilities. AHV will have a non-exclusive license to manage the teaching physician space and operate and maintain the entire facility. At the end of the 30-year term, AVH will hand over entire responsibility for the site and the facility to the owner, VCH.
Checkbox Checked Revenue Stream (Cash Flow) Created Through Initial Commitment of Public Sponsor(s): In leasing back 14,000 SF of the facility to the concessionaire, AHV’s will be provided with the means to establish a significant financial return on the project. This return will be dependent on how successful AHV is at leasing both the teaching physician space and retail area for commercial and operation use. Additionally, for spaces VCH occupies in the new facility, it will bay a base rent that will increase at 2.5% each year.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): The owner will pay the concessionaire annual performance-based payments to cover the initial capital cost of the project as well as the operations and maintenance costs. The payments are subject to reductions for any costs the owner may incur to remedy deficiencies if operations and maintenance standards are not met. If the owner responds to these deficiencies before the contractor, the contractor must repay the direct costs of doing so plus a 15% mark-up.

Souces of Project Support (Monetary)

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: The private concessionaire is fully responsible for covering the capital and operating costs of the facility. It is also fully responsible for all the financing directly related to doing so.

Checkbox Checked

From Producers as Equity: The private concessionaire is offered equity in the project over the 30 year term. Specifically, the concessionaire "owns" and operates the facility during this term and leases retail and health care space to the owner and other commercial entities. The successfulness of these leases will determine how much return on investment is realized by the concessionaire. Therefore, there is an incentive to keep all spaces fully occupied at all times.

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 independent checking engineer? No
Project Finance Method: All By Private 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
32
0
Forms
Description
Other
Partnerships British Columbia Agreement 

Project Value (If and As Known)

Date of Estimated Project Value: May 23, 2011
Project Value
Hard Cost
Hard & Soft Costs
Construction
< $100 Million US
(none)
Operations & Maintenance
< $200 Million US
(none)
Total
< $200 Million US
(none)
Array ( )

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