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: June 6, 2011

Project Name: VIHA Residential and Assisted Care Init.
Year in Operation: 2008
Sector: Buildings
Subsector: Health Care Facility
Status: In Operation
Type: Substantial Alteration of Existing Facility
Description: An increased demand for long-term care services of the elderly has resulted in the need to create new capacity as well as renovate or replace outdated elderly health facilities. Consequentially, the Government of British Columbia committed to developing 5000 new long-term care beds and assisted living units by 2008 as part of a new five-year strategic plan. This resulted in a $210 million initiative including several separate developments of 1050 new units with the flexibility to add an additional 180 units by the year 2010 and the development potential for an additional 300 units in the future. To achieve these goals, the Vancouver Island Health Authority (VIHA) and the Province of British Columbia signed ten different Design, Build, Finance, and Operate (DBFO) agreements with nine different service providers to develop these facilities in British Columbia. The VIHA and the Province are responsible for funding each facility at an agreed-upon amount for a 20-year operating term.
Delivery Method as described in the country where it's located: Design Build Finance Operate Maintain
Is the project still active: Yes
Comments: Program Initiative consists of 10 different projects awarded to nine different DBFO concessionaires with a 20-year operating term for each agreement

Project Locations

Address: 250A Craig Street
City: Parksville
State: British Columbia
Country: Canada

Address: 385 Waterfront Crescent
City: Victoria
State: British Columbia
Country: Canada

Address: 6081 Uplands Drive
City: Nanaimo
State: British Columbia
Country: Canada

Address: 6764 Ayre Rd
City: Spoke
State: British Columbia
Country: Canada

Address: 408 Parry Street
City: Victoria
State: British Columbia
Country: Canada

Address: 850 - 14th Avenue
City: Campbell River
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Land: Each Concessionaire is responsible for procuring additional land if necessary to support the individual facilities. They are incentivized to procure as little new land as possible.
Checkbox Checked Access to Land: Each concessionaire will be provided with an exclusive license to access the facility site during construction. During the 20-year operation term, each will be given a non-exclusive license to access and operate the facility.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): The concessionaires will receive annual performance payments one the facility has been accepted by the VIHA and it meets all design requirements, and the requirements of the Community Care and Assisted Living Act and all other legislative and regulatory requirements. Additionally, these payments are subject to deductions in instances where the concessionaire is not meeting previously agreed-upon operating service and quality standards. Performance during the 20-year operating period will be monitored by VIHA staff.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The public sector partners for the project are the Ministry of Health Services and the Vancouver Island Health Authority (VIHA).

Arrow Right
Checkbox Checked

Direct Cash Support: The Province, through BC Housing, is providing ongoing subsidies during the 20-year operating term under the Independent Living BC (ILBC) program. The VIHA is providing annual funding through performance payments.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: In general, the nine service providers are responsible for all aspects of financing their design, development, construction, and operational costs. Typically, the service provider secured construction financing for the development phase. Once the facility is ready for occupancy, the concessionaires secured longer term, mortgage financing (usually for 25-35 years), for approximately 75% of the cost of the facility (average facility cost is $20 million CAD). Insurance from the Canada Mortgage and Housing Corporation was usually purchased by service providers to insure their mortgage against default.

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? No
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
22
0
Forms
Description
Other
Partnerships B.C. Contract Documents 

Project Value (If and As Known)

Date of Estimated Project Value: June 6, 2011
Project Value
Hard Cost
Hard & Soft Costs
Total
$200-500 Million US
(none)

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