BARRIE - Royal Victoria Hospital and Infrastructure Ontario announced today that financial close has been achieved with Vanbots, a Division of Carillion Construction Inc., for the hospital's Phase I Expansion Project, which includes the addition of the Simcoe Muskoka Regional Cancer Centre. Financial close signals that all contractual steps have been completed and construction can begin. Vanbots will begin mobilizing equipment on site over the next few weeks, with an official groundbreaking ceremony to follow shortly after.

The project will improve access to much needed services in the community. More residents will be treated closer to home with Simcoe Muskoka Region Regional Cancer Centre, more capacity and services in the Emergency and Diagnostic Imaging Departments, and a dedicated Coronary Care Unit.

Vanbots signed a contract with the hospital to build and finance the redevelopment project for $258.5 million. The contract guarantees a fixed price and fixed completion date. During the construction period (from 2009 to 2013), the project will support project-related jobs in Barrie and the surrounding area and boost the local and Ontario economies. At the peak of construction, more than 200 workers will be on site daily.

“This is the largest reinvestment in health-care facilities in more than a generation in Ontario,” said George Smitherman, Deputy Premier and Minister of Energy and Infrastructure. “Our government has committed to a five-year, $30-billion infrastructure renewal program across all sectors in Ontario.”

“This significant expansion of Royal Victoria Hospital will be critical in supplying quality health care to the rapidly growing city of Barrie and the region,” said Barrie MPP Aileen Carroll.

“This project will nearly double the size of our existing hospital and allow us to better meet the needs of our exploding population,” said Janice Skot, President and CEO of Royal Victoria Hospital. “By adding a regional cancer centre to Royal Victoria Hospital, we're bringing care closer to home for patients across our region.”

The project team, led by Vanbots, includes financing arranged by Banco Espirito Santo de Investimento SA; National Australia Bank Limited; Norddeutsche Landesbank Gironzentrale; Bank of Montreal; CIT Financial Ltd.; National Bank of Canada Inc.; and Toronto Dominion Bank. 

National Bank Financial served as financial advisor, and CIT Financial Limited acts as Administrative Agent to the banks. 

Construction of the new addition and cancer centre is expected to be completed in fall 2011, with the significant renovations to the existing hospital completed by spring 2013.

Infrastructure Ontario and the Ministry of Health and Long-Term Care are working with Royal Victoria 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.

Visit www.infrastructureontario.ca for more information.

Contacts: 

Amy Tang
Minister's Office
Energy and Infrastructure
416-327-6747

Jennifer Sclisizzi
Infrastructure Ontario
416-325-7409

Jane Cocking
Royal Victoria Hospital
705-728-9090 ext. 41611