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 13, 2011

Project Name: Fort St. John Hospital and Residential Care
Year in Operation:
Sector: Buildings
Subsector: Health Care Facility
Status: Design / Construction
Type: New Facility
Description: The Fort St. John Hospital and Residential Care project involves the design, construction, finance, and operations of a 23,353 square meter, two-story, 55-bed acute care hospital and 7,916 square meter, two-story, 123-bed residential care facility for seniors. It will replace the existing Fort St. John Hospital that was originally constructed in 1962 with the goals of expanding health care services, improving patient flows, addressing population growth demands, and improving health care in the Peace River North Region. It will also include integrated services for food, laundry, and material alongside key features such as a significant emergency department, ambulatory clinic space, and maternity ward. The project will achieve LEED Gold certification.
Delivery Method as described in the country where it's located: Design Build Finance Operate Maintain
Is the project still active: Yes
Comments: Note: Other project elements such as medical information technology (IT) equipment will be procured using a traditional delivery model and are budgeted at $48.5 million CAD. All project information was extracted from the Partnerships B.C. webpage

Project Locations

Address: 86th Street
City: Fort St. John
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The new facilities will be constructed on a portion of a green-field 16-hectare site donated by the City of Fort St. John. Northern Health owns the site and the facilities.
Checkbox Checked Access to Land: The concessionaire has been granted an exclusive license to the site and facilities during construction. It will be granted a non-exclusive license during the operating term to provide the services of the agreement.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): The concessionaire will receive annual service payments (ASP) based on performance, specifically in the areas regarding facility availability and service quality. These payments will be subject to reductions if the concessionaire does not meet previously agreed upon performance standards set out in the contract agreement. These payments commence only when the concessionaire has completed the construction phase of the project. For the first 12 months of operations, the ASP will be $10.5 million CAD, assuming no deductions for performance failures.
Checkbox Checked Environmental Clearance: Both the hospital and residential care facilities are being designed and built to achieve a LEED Gold certification and will be high-performance and energy efficient facilities. Specifically, for this project, this included: 1) a construction waste management plan to achieve a 75% reduction in construction waste sent to the landfill; 2) use of pine beetle-killed wood in the construction and for design features, 3) storm water management including a storm water wetland rainwater collection landscape feature and bio-swales; 3) a building that is 25 % more efficient than that called for by the Model National Energy Code for Buildings; and 4) high indoor air quality through the use of low emitting materials including adhesives, sealants, paints, coatings and carpets.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The public funding partners for the project are Northern Health, the Peace River Regional Hospital District, and the Province of B.C.

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Checkbox Checked

Direct Cash Support: The financial agreement between Northern Health and the concessionaire replaces an agreement that would typically exist between a private sector concessionaire and senior bank lenders in a P3 contract. As a result of the volatile financial market and high risk in 2008, the owner is acting as the senior bank lender for the concessionaire to fund the upfront capital costs of the project. This agreement permits the owner to contribute funds up to 121.5 million CAD during construction for eligible costs incurred by the concessionaire. This will be paid out after the achievement of specific construction milestones. The Peace River Regional Hospital District is contributing 98 million CAD toward the project and financing costs that will be paid out monthly as construction progresses.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: All private sector debt is provided by the owner of the project to finance capital costs for design and construction.

Checkbox Checked

From Producers as Equity: Typically, PPP projects executed under the Partnerships B.C. framework require no more than 10% equity financing from the private sector concessionaire. However, as a result of the global economic crisis at the time of procurement in 2008 for this project, the owner has allowed the concessionaire to finance approximately 20% of the project through equity, eliminating a more significant cost and risk associated with bank debt. In this wide-equity structure, a portion of payments made to the concessionaire (on its equity investment) are held until the last two years of the agreement to ensure they provide high levels of service throughout the entire 30-year term. Because of this, the owner has assumed the typical due diligence role of senior lenders applied during construction and operations.

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
Based Selection
Request for
Request for
for Bids

Term for Key Components & Forms of Contract

Project Component
Combined Term: Initial Design, Construction, O&M Period
Partnerships B.C. Agreement 

Project Value (If and As Known)

Date of Estimated Project Value: June 13, 2011
Project Value
Hard Cost
Hard & Soft Costs
$250 Million - 1 Billion US
$200-500 Million US


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