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 8, 2011

Project Name: BC Cancer Agency Centre for the North
Year in Operation:
Sector: Buildings
Subsector: Health Care Facility
Status: Design / Construction
Type: New Facility
Description: The BC Cancer Agency Centre for the North is a part of the Northern Cancer Control Strategy to provide residents of northern British Columbia with increased access to cancer treatment and diagnostic services. The design of the facility will ensure the building reflects the cultural and community context of northern BC and will maximize the use of wood as a key building material. The new center will include two linear accelerators used in the delivery of radiation therapy, one computerized-tomography simulator used in cancer treatment planning, a systemic therapy unit with eight chairs and three stretchers, a pharmacy, general outpatient clinics, professional staff offices, and underground parking. The private partner will be responsible for providing a range of services over a 30-year maintenance term including plant services, facilities management, help desk services, utility management services, snow removal and continued maintenance of the parking garage.
Delivery Method as described in the country where it's located: Public Private Partnership
Is the project still active: Yes
Comments: The project agreement is a design-build-finance-maintain contract with a 30-year term. All information was provided by the Partnerships BC website and project documents available online.

Project Locations

Address: Lethbridge St.
City: Prince George
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The BC Cancer Agency Centre for the North is being constructed on the site that previously supported the former Prince George Regional Hospital. The site is owned by Northern Health (NH) who granted a long-term lease of the land to the BC Cancer Agency for this project.
Checkbox Checked Access to Land: The concessionaire has been granted an exclusive license to undertake the construction of the project and then will be granted a non-exclusive license during the 30-year operating term to access the site. These licenses are granted by the BC Cancer Agency.
Checkbox Checked Revenue Stream (Cash Flow) Created Through Initial Commitment of Public Sponsor(s): The funding agreement between BC Cancer Agency and the concessionaire is unique in that it replaces the credit agreement that would exist between a private sector concessionaire and commercial lenders in a typically financed public private partnership. The term of the funding agreement is from financial close to service commencement. The agreement permits the BC Cancer Agency to contribute funds up to $54.5 million during design and construction. Funding is scheduled monthly and based on satisfactory documentation and completed construction progress monitored by the authority technical advisor. This is essentially the same process that a commercial lender(s) would employ when financing a partnership project.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Once construction is complete, the concessionaire will receive annual service payments (ASP) over the 30-year operating period. A portion of the payment will cover facilities management services, while another portion is for designing, building, and providing equity towards the capital cost of the project. Finally, part of the ASP will cover major repairs and the replacement of building elements during the 30-year term. Payments will be based on the performance of the concessionaire and the availability of the facility to staff and patients over the duration of the agreement. Payment deductions will be made for non-availability and the failure to reach specified service quality levels.
Checkbox Checked Environmental Clearance: The center will be designed and built to achieve LEED® Gold Certification

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The Fraser-Fort George Regional Hospital District is providing up to $4 million CAD in additional capital toward the Northern Cancer Strategy, of which, the new Cancer center is a part of. Additionally, the Province, through the BC Cancer Agency, is acting as a form of a commercial lender to the concessionaire during design and construction as previously described

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: During design and construction, the concessionaire is providing financing for the project. This specific structure is unique however as the Province through the BC Cancer Agency is acting as the commercial lender, or senior debt provider, for the concessionaire.

Checkbox Checked

From Producers as Equity: The concessionaire contributed a large amount of equity toward the project, approximately 20% of the total capital costs.

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
33
0
Forms
Description
Other
Partnerships BC Project Agreement 

Project Value (If and As Known)

Date of Estimated Project Value: June 8, 2011
Project Value
Hard Cost
Hard & Soft Costs
Construction
< $100 Million US
(none)
Total
< $200 Million US
(none)

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