Commercial and Financial Close Achieved on North Island Hospitals Project

Jul 03 2014

Graham and Gracorp, as part of the Tandem Health Partners, achieved commercial and financial close on the CDN$606.2 million North Island Hospitals project. This is the largest single healthcare project in British Columbia.

The project is a public private partnership (P3) with the Vancouver Island Health Authority which includes the design, build, finance and maintenance aspects of two new LEED-gold-certified hospitals on Vancouver Island, British Columbia.

Gracorp led the Tandem consortium with Balfour Beatty Canada Inc. Graham is the sole design-builder responsible for all design and construction of the two hospitals under the P3 model. The project will encompass two new, state-of-the-art acute care facilities, a 153-bed hospital in Comox Valley and a 95-bed hospital in Campbell River. The new hospitals will include approximately 72,000 m2 (775,001 sq. ft.) of new space and deliver numerous health care services such as: emergency care, diagnostic imaging , surgical and endoscopy services, maternity, ambulatory care programs, cardio-pulmonary diagnostic services, mental health, addiction programs, and University of British Columbia teaching space. Each facility includes structured and surface parking.

The project is expected to meet energy and greenhouse gas emission targets under the BC Climate Action Plan and is being financed in part through the issuance of “green” bonds, the first such debt financing for a public-private infrastructure project in North America.

Construction of the new hospitals will commence in July 2014 and is expected to be completed by May 2017. Tandem’s contract with VIHA includes an operating term of 30 years.