Contract awarded for new Bridgepoint Hospital



    
    Environmentally friendly facility to boost economy during construction
    and will respond to today's number one health care issue - complex
    chronic disease
    

    TORONTO, Aug. 12 /CNW/ - Bridgepoint Health and Infrastructure Ontario
today announced that Plenary Health signed a contract with the hospital to
design, build, finance and maintain the new Bridgepoint Hospital. The new
facility will replace the existing aging hospital; it has been designed
specially for patients with complex chronic disease (multiple lifelong
illnesses) - the number one health care issue of the 21st century. Today's
announcement signifies that all contractual steps have been completed and
construction can begin immediately.
    The construction project will provide a sizeable boost to the regional
and Ontario economies by directly and indirectly creating and supporting
thousands of jobs. At the peak of construction, it is estimated that 500 to
600 workers will be on site daily. Labour will largely be drawn from the
Greater Toronto Area.
    The new Bridgepoint Hospital will remain in Riverdale, at Broadview
Avenue and Gerrard Street East. It has been designed with environmentally
responsible and sustainable features and will be certified under the
Leadership in Energy and Environmental Design (LEED) Green Building Rating
System.
    In comparison to standard hospital designs, the new Bridgepoint Hospital
will:

    
    -   Consume less energy;
    -   Use 20 per cent less potable water;
    -   Use storm-water runoff from the roof for landscape irrigation;
    -   Support alternative transportation options by providing:
        -  Preferred parking for carpools
        -  Amenities for cyclists (storage, showers, and expanded staff
           change rooms)
    -   Maximize the use of natural light; and,
    -   Divert at least 75 per cent of construction waste away from landfill
        by recycling or salvaging construction materials.

    Staff at the new 10-storey, 472 bed and 680,000 square foot building will
help people living with complex chronic disease to reach their full potential
in a state-of-the-art facility, providing:

    -   Independent living space;
    -   A washroom in each patient room for enhanced infection prevention and
        control;
    -   Increased ambulatory space for outpatient/community programming;
    -   Larger rooms with modern technologies for more bedside procedures;
    -   More natural light and spectacular views of the city;
    -   Double the amount of square footage for therapy space, including a
        state-of-the-art therapy area on each floor for easy access;
    -   A new in-ground therapy pool that is triple the size of the existing
        above-ground pool;
    -   Double the number of patient lounges;
    -   More room for specialized wheelchairs, letting patients regain their
        independence in their own space;
    -   Bright, open dining rooms and common areas for visiting and
        recreational activities; and
    -   New areas open to the public, including a cafeteria, auditorium,
        retail shops, library, internet café, rooftop garden and labyrinth
        terrace.
    

    The historic Don Jail will be preserved and repurposed, bringing together
world-class clinical, education, and research talent. The main entrance will
be publicly accessible, the Rotunda will be restored to its original beauty,
and some cells and the gallows will be preserved for historical purposes.
    Plenary Health participated in an open, fair and competitive procurement
process and submitted the proposal with the best value for Ontario taxpayers.
    The Plenary Health team includes Plenary Group, Innisfree, HDR
Architects/Diamond Schmitt Architects Inc., PCL Constructors Canada Inc.,
Johnson Controls Inc., and RBC Capital Markets. Financing for the Bridgepoint
Hospital project is being provided by RBC Dominion Securities Inc. as bond
underwriter, together with a banking group consisting of Calyon New York
Branch, Dexia Credit Local and Royal Bank of Canada. Equity is being provided
by Plenary and Innisfree.
    The Bridgepoint Hospital project will be delivered using an alternative
financing and procurement model. Plenary will receive annual payments from
Bridgepoint Health over a 30-year period. Payments cover construction,
building maintenance, lifecycle repair and renewal and project financing.
Lifecycle repair and renewal will ensure that heating and cooling systems,
windows, floors and roofing structures, for example, are kept in excellent
working condition over the 30 year period. The annual payments are comparable
to a fixed-rate mortgage with maintenance and repair expenses included and
will total approximately $1.27 billion after 30 years. In today's dollars this
is equivalent to approximately $622 million.
    Construction of the new hospital will be completed in early 2013 and
patients will move in the spring of 2013.
    Infrastructure Ontario and the Ministry of Health and Long-Term Care are
working with Bridgepoint Health and Plenary Health to develop the new
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.

    Bridgepoint Health is Canada's leader in the prevention and management of
complex chronic disease and disability. Affiliated with the University of
Toronto, Bridgepoint Health is restoring lives through innovations in care,
research and teaching.

    Visit www.infrastructureontario.ca for more information.

    Disponible en français


    Quotes :

    
    George Smitherman, Deputy Premier and Minister of Energy and
    Infrastructure
    

    "As a result of our government's investments, we now have more than 100
new and existing hospitals in various stages of development across the
province. By investing in our health care infrastructure, we are stimulating
the economy, creating jobs and building stronger and healthier communities."

    Marian Walsh, President and CEO, Bridgepoint Health

    "We're thrilled to be moving forward with a much-needed facility that
will be specifically designed to meet the specialized care needs of people
with complex chronic disease (CCD). Today, a staggering one-third of Ontarians
have CCD. Our role at Bridgepoint is to restore lives by helping people to
reach their full potential, while living with CCD. Together with the Ontario
Government and Plenary Health, we will be creating a centre of excellence that
will support our patients on their journey to better living. In addition to
innovations in patient care, the new hospital will bring together top
research, education and clinical talent in search of new ways of preventing
and managing CCD."

    Mike Marasco, CEO, Plenary Health

    "Our team is pleased to have reached this important milestone and look
forward to working with our partners at Bridgepoint Health over the next 34
years to build and maintain a state-of-the-art facility."


    
    Backgrounder

                PROJECT COSTS OF THE NEW BRIDGEPOINT HOSPITAL

    The Contract with Plenary Health

    Plenary Health (Plenary) has signed a contract with Bridgepoint Health to
design, build, finance and maintain the new Bridgepoint Hospital in Toronto
and will receive annual payments from Bridgepoint over a 30-year period. These
payments cover:

    -   design
    -   construction
    -   lifecycle repair and renewal (building maintenance for 30 years after
        construction)
    -   project financing
    

    The contract with Plenary is for a fixed price of $622 million in today's
dollars, to be delivered by a fixed completion date. The contract agreement
also makes Plenary responsible for design errors and omissions, project
management and sub-contractor co-ordination, increases in construction
material prices and labour costs, schedule and project completion delays, and
other related constructions risks. In the past, the public sector was
responsible for these risks. However, the Alternative Financing and
Procurement (AFP) model now transfers these risks to the private sector -
Plenary, in this case.
    The hospital's 30-year maintenance agreement with Plenary will ensure its
new facility's roofing structure, windows, floors, elevators, heating and
cooling systems and other physical components are kept in excellent working
condition over the term of the agreement. In the past, the public sector was
responsible for repair and renewal of the building but now the private sector
has this responsibility. Under the project agreement, if the hospital needs a
new roof or a new boiler, the private sector replaces and pays for it. The
public sector has built in a 30-year guarantee for these physical features,
which previously had only a one-year guarantee.
    The hospital remains responsible for clinical care, soft maintenance
services (housekeeping, laundry and waste service) and non-clinical support
services (patient transportation, patient food services and medical equipment
maintenance).

    Annual Payments to Plenary

    The annual payments are comparable to a fixed-rate mortgage with
maintenance and repair expenses included. For example, if a homeowner signs a
mortgage agreement today, the homeowner commits to the cost of the house in
today's dollars (this is known as the net present value). However, over the
lifetime of the mortgage, the homeowner pays monthly mortgage payments plus
the costs of updating and maintaining the house during that period. This
cumulative cost is called the nominal cost. In the case of the Bridgepoint
project, while the cost of the contract in today's dollars is equivalent to
$622 million, after 30 years, this will total approximately $1.27 billion.
    Annual payments to Plenary are performance-based. Payments can be
withheld if Plenary does not meet the agreed upon performance standards.

    
    Additional Project Costs
    ------------------------

    In addition to the contract costs, Bridgepoint pays for other non-capital
and fixed costs such as:

    -   Replacement furniture, equipment and information technology
        -  100 per cent covered by Bridgepoint
    -   Permits, architectural and engineering fees, transaction fees and
        project management fees
        -  Cost shared with Ministry of Health and Long-Term Care

    Including these other costs, the total cost of the Bridgepoint Hospital
project is approximately $1.4 billion.

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/
    





For further information:

For further information: Media Contacts: Jessica Hooker, Infrastructure
Ontario, (416) 327-5325; Eva Lannon, Bridgepoint Health, (416) 302-5536


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