Infrastructure Ontario confirms accuracy of costs of Sarnia Bluewater Health redevelopment project



    TORONTO, Oct. 6 /CNW/ - Bluewater Health signed a contract to construct
the hospital's redevelopment project on October 4, 2007. The cost of that
contract is fixed at $214 million, which will be paid only when the new
construction is completed. This contract includes all the costs associated
with constructing the new facility including renovations and financing costs.
    There are other project costs, as is the case in all redevelopment
projects - about $62 million made up of new furniture and equipment, planning
and design costs, and some costs which have already been incurred on the
project. The construction contract plus other project costs make up the total
Ministry of Health and Long-Term Care approved redevelopment cost of $276
million.
    The redevelopment project at a cost of $276 million will house:
    
      -  An emergency department significantly larger than the current
         emergency facilities.
      -  A Surgical Centre with eight new operating rooms and four new
         procedure rooms to replace existing surgical facilities.
      -  A consolidated maternal infant child program, which will, for the
         first time, offer labour, birthing and paediatric services on one
         floor.
      -  An 18 per cent increase in the number of acute care beds, resulting
         in a total bed capacity of up to 267 acute beds at the Norman Street
         site.
      -  A bridge that will join the new building with the Norman Street
         building.
    

    Other discretionary spending decisions and projections are routinely
reported by hospitals to the Ministry of Health and Long-Term Care. The
inclusion of these projections in total project costs are inaccurate.
    Approximately 100 to 150 workers will be on the site daily and for a
project of this size, hundreds of thousands of dollars will be spent on labour
and on purchasing construction and other related supplies in the surrounding
communities.
    A third party value for money assessment by PriceWaterhouse Coopers (PWC)
on the transaction demonstrates a $16.2 M savings (or 6.1%) on the
construction contract costs versus had the project been delivered under a
traditional delivery model.
    The construction contract and the PWC letter are available on
Infrastructure Ontario's website at www.infrastructureontario.ca.

    
    -------------------------------------------------------------------------
    Project Costs  Explanation
    -------------------------------------------------------------------------
    $214M          Bricks & mortar, and financing
    -------------------------------------------------------------------------
    $ 62 M         Planning & Design including architectural, engineering,
                   and project management, building permit and moving. New
                   furniture & medical equipment. Previous work completed
                   (MRI/CT suite, boiler, and generator)
    -------------------------------------------------------------------------
    $276M          Total Redevelopment Costs
    -------------------------------------------------------------------------

    




For further information:

For further information: Mary Lowe, Infrastructure Ontario, (416)
917-1599


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