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 15, 2011

Project Name: Kelowna and Vernon Hospitals Project
Year in Operation:
Sector: Buildings
Subsector: Health Care Facility
Status: Design / Construction
Type: Substantial Alteration of Existing Facility
Description: The project is an initiative for both the Interior Health Authority (IHA) and the Province of British Columbia that combines extensive upgrades at the Kelowna General Hospital (KGH) and the Vernon Jubilee Hospital (VJH) into a single contract. The goal of the initiative is to improve patient outcomes and achieve efficiencies. For the KGH, the upgrades include: a new six-story, 33,500 square meter patient care tower comprised of general clinics, large operating rooms, diagnostic services, renal dialysis, and a rooftop helipad, a modernized emergency department, two shelled-in floors for future patient beds, a two-story, 3,200 square meter UBC Clinical Academic Campus building, and a multi-level parking structure. For the VJH, the upgrades include: a new seven-story, 16,8oo square meter patient care tower comprised of a new intensive care unit, new extended outpatient program, operating rooms, and maternity wards, a modernized emergency department with expanded facilities and services with ground level access, and two shelled-in floors for future patient beds.
Delivery Method as described in the country where it's located: Design Build Finance Operate Maintain
Is the project still active: Yes
Comments: Note: There are additional project elements required to support the project such as site pre-load at KGH. These additional project elements will be procured using the traditional delivery model as a series of projects between 2008 and 2012. All project information was taken from the Partnerships B.C. webpage.

Project Locations

Address: 2268 Pandosy St
City: Kelowna
State: British Columbia
Country: Canada

Address: 2101-32nd Street
City: Vernon
State: British Columbia
Country: Canada

Souces of Project Support (Non-monetary)

Checkbox Checked Land: The Interior Health Authority (IHA) previously owned the site and will continue to own the site throughout the project term. No new ROW had to be purchased to support the project.
Checkbox Checked Access to Land: The concessionaire is granted a non-exclusive license to operate and maintain the facility over the 30-year project term.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): After the private concessionaire completes the construction of the project, it will receive annual services payments as repayment for designing, building, and financing the majority of the capital costs for the project as well as for services during the 30-year operating term such as physical plant maintenance, including major repair and replacement of deteriorating building elements. Actual payments to the concessionaire will be made monthly and will be dependent on performance, facility availability, and service quality. Deductions will be made in the event the concessionaire fails to achieve specified levels of service in these areas—this will be measured against an agreed upon set of key performance indicators. For the first full year of operations, the annual service payment is estimated to be 23.9 million CAD (assuming no performance deductions materialize).
Checkbox Checked Environmental Clearance: The project will be designed and constructed to achieve LEED Gold Certification.

Souces of Project Support (Monetary)

Checkbox Checked

From Public (Government) Sources to Producers: The project will be partially financed through contributions from the Interior Health Authority (IHA), the North Okanagan and Columbia Shuswap Regional Hospital District, and the Central Okanagan Regional Hospital District.

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: The financing arm of the private concessionaire is partially comprised of senior debt lenders who will finance a significant portion of the private sector investment in the project capital costs. These senior debt lenders are Dexia Credit Local S.A. and the Royal Bank of Canada. In the event the concessionaire refinances the initial senior debt, any resulting gain will be shared on an equal basis between the public and private sectors. This also applies where equity is converted to senior debt.

Checkbox Checked

From Producers as Equity: The other portion of the concessionaire’s financing arm is comprised of two equity investors that will support the private sector investments. These investors are John Laing Investments Ltd., and Bilfinger Berger Investment S.A.

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
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 15, 2011
Project Value
Hard Cost
Hard & Soft Costs
$250 Million - 1 Billion US
$200-500 Million US


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