Value for Money Report Released

TORONTO-Infrastructure Ontario and Hôpital régional de Sudbury Regional Hospital (HRSRH) announced today that EllisDon Corporation and its partners have achieved financial close, which signals that all contractual steps have been completed for Phase Two of the hospital's redevelopment.

“A tremendous milestone has been reached -- a milestone which paves the way for improved access to health care in Sudbury,” said Minister of Public Infrastructure Renewal David Caplan. “The final contract is signed demonstrating that the McGuinty Government has delivered on its commitment to the community.” 

“The redeveloped hospital in Sudbury will meet the needs of a growing population and provide a modern facility for local residents,” said Minister of Health and Long-Term Care George Smitherman.  “By investing in hospitals, we are helping to ensure that first-class health services are available to all Ontarians.”

“Our government said we would complete the hospital and we are - as promised, and today's news is another clear indicator of that,” said Northern Development and Mines Minister and Sudbury MPP Rick Bartolucci. “I am proud that our government is proceeding in an open, accountable and efficient manner for the sake of Ontario taxpayers and ensuring our hospital is completed as soon as possible.”

The deal commits EllisDon Corporation to build and finance Phase Two of the hospital's redevelopment project for $131.9 million, which will be paid only when construction is completed.  

PricewaterhouseCoopers LLP completed a value for money assessment and projected an estimated $16.7 million in savings compared to the estimated cost using a traditional procurement model.  The assessment was made on the $131.9 million construction contract for the project.

The Value for Money (VFM) report is available on Infrastructure Ontario's website, along with the project agreement.  The VFM report provides a summary of project costs including the cost of the contract with EllisDon Corporation and transaction and other ancillary costs.

The estimated total cost of the hospital's Phase Two redevelopment project is $225 million.  This includes the fixed construction contract with EllisDon as well as other costs such as furniture, equipment, permits, architectural and engineering fees, transactional and project management fees.

Construction began in March 2007 and is expected to be completed in late 2009. 

Highlights of the redevelopment project include:

  • a new emergency department
  • 17 operating rooms
  • an expanded intensive care unit
  • modernized medical equipment
  • new dialysis stations
  • expanded cardiac catheterization lab and cardiac rehabilitation services
  • enhanced rehabilitation services for physiotherapy, respiratory and speech

“The one-site hospital we are currently building will allow our physicians and staff to provide the highest quality of care for our patients,” said Vickie Kaminski, HRSRH President and CEO. “The agreement will ensure that our hospital is built not only to the highest standards, but also on time and on budget.”

Infrastructure Ontario will work with Sudbury Regional Hospital to redevelop the hospital, which will remain publicly owned, publicly controlled and publicly accountable.  Infrastructure Ontario is a Crown corporation dedicated to managing some of the province's larger and more complex infrastructure renewal projects - ensuring they are built on time and on budget. 

This project is guided by principles outlined in the Province's Building a Better Tomorrow framework, which ensures public ownership of core assets such as hospitals, schools, and water and wastewater facilities.  The Sudbury Regional Hospital project is one of many infrastructure projects being upgraded and modernized under ReNew Ontario, the government's five-year, $30-billion plus public infrastructure investment plan.  

Visit www.infrastructureontario.ca for more information.

Contacts:

Amy Tang     
Minister's Office   
Public Infrastructure Renewal 
416- 325-4048

Jennifer Sclisizzi 
Infrastructure Ontario
416-325-7409

Laura Blondeau
Minister Bartolucci's Office
705-564-7454    

Viviane Lapointe
Hôpital régional de Sudbury Regional Hospital
705-523-7118

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