PENETANGUISHENE, ON, Jan. 31 /CNW/ - Mental Health Centre
Penetanguishene (MHCP) and Infrastructure Ontario today announced that
Integrated Team Solutions (ITS) has signed a contract with the hospital
to design, build, finance and maintain a new, state-of-the-art forensic
mental health facility.
Built on the hospital's existing site, the new hospital will replace the
160-bed Oak Ridge Facility and the 20-bed Brebeuf Facility, offering a
larger, more modern space for treatment and care of people with mental
health disorders who have been involved with the criminal justice
system. Once complete, the new facility will consolidate MHCP into a
more efficient, integrated complex.
Today's announcement signifies that all contractual steps have been
completed and the project can move forward. Construction of the new
building is expected to begin in early 2011 and will be completed in
The project will create hundreds of construction jobs through the
employment of local trades and construction related suppliers. At the
height of construction, as many as 300 workers are expected to be on
site daily. Labour and materials for the project will be drawn largely
from the Midland-Barrie-Simcoe areas and the surrounding communities.
The ITS consortium represents a joint venture between EllisDon
Corporation and Fengate Capital Management Ltd., with EllisDon also
providing construction services. The facility was designed by Cannon
Design and Honeywell Limited will provide facilities management.
National Bank Financial Inc. acted as the financial advisor to ITS.
MHCP has signed a contract with ITS for $474.1 million, in current
(2011) dollars. When adjusting for the anticipated inflation over the
30-year contract term, the contract value is $634.1 million.
MHCP's redevelopment project will be delivered using an Alternative
Financing and Procurement (AFP) model.
MHCP aims to achieve Leadership in Energy and Environmental Design
(LEED®) Gold certification for the design and construction of the new
facility. LEED® standards focus on healthy indoor environments, reduced
greenhouse gas emissions and efficient use of energy, water and other
Infrastructure Ontario and the Ministry of Health and Long-Term Care are
working with Mental Health Centre Penetanguishene to develop the new
hospital, which will remain publicly owned, publicly controlled and
Infrastructure Ontario is a Crown corporation dedicated to delivering
some of the province's larger and more complex infrastructure renewal
projects - ensuring they are built on time and on budget; as well, it
is dedicated to providing the public sector and not-for-profit
organizations with long-term financing to renew their infrastructure.
Mental Health Centre Penetanguishene is a 312-bed psychiatric hospital
located on Georgian Bay in the Town of Penetanguishene, approximately
150 km northwest of Toronto. MHCP provides an extensive range of both
acute and longer-term psychiatric inpatient and outpatient services to
all of Simcoe County, part of Dufferin County and the southern portion
of Muskoka/Parry Sound. In addition, MHCP provides the province's only
maximum secure forensic hospital for clients served by both the mental
health and justice systems. The hospital is recognized for the
provision of exceptional care to those most needing mental health
services and for its contributions to the understanding of mental
Visit www.infrastructureontario.ca or www.mhcp.on.ca for more information.
Honourable Bob Chiarelli, Minister of Infrastructure
"This project is part of the largest reinvestment in health care
facilities in Ontario in more than a generation. By investing in our
health care infrastructure, we are stimulating the economy, creating
jobs and building stronger and healthier communities."
Aileen Carroll, MPP for Barrie
"This project is important not only for the many health care benefits it
will provide, but also for the construction jobs it will create and the
stimulus it will generate in the region and surrounding communities."
John McCullough, Board Chair of Mental Health Centre Penetanguishene
"With our partnership with ITS formalized, we look forward to the
important work of building a state-of-the-art facility that will have
enormous benefits on the people we serve and will help support a new
era in mental health care. This project is also wonderful news for our
community as it will have a tremendous economic spin-off, including
construction and trades job creation."
Carol Lambie, President and CEO of Mental Health Centre Penetanguishene
"Today is a momentous day for our hospital. We wish to thank the
government and our community for their commitment to our vision, and we
look forward to a long and productive partnership with Integrated Team
Disponible en français
MENTAL HEALTH CENTRE PENETANGUISHENE PROJECT
Integrated Team Solutions (ITS) has signed a contract with the Mental
Health Centre Penetanguishene (MHCP) to design, build, finance and
maintain a new state-of-the-art forensic mental health facility. The
ITS consortium represents a joint venture between EllisDon Corporation
and Fengate Capital Management Ltd., with EllisDon also providing
construction services. The facility was designed by Cannon Design and
Honeywell Limited will provide facilities management. National Bank
Financial Inc. acted as the financial advisor to ITS.
Long-term fixed rate financing for the Mental Health Centre
Penetanguishene is being provided by Sun Life Assurance Company of
Canada and The Canada Life Assurance Company as advised by National
Bank Financial, together with short-term financing provided by National
Bank of Canada and the Toronto-Dominion Bank. Equity is being provided
by Fengate Capital Management on behalf of LPF Infrastructure Fund and
OE Infrastructure Fund, and EllisDon Corporation.
ITS participated in an open, fair and competitive procurement process
and submitted the proposal with the best value for Ontario taxpayers.
The contract with ITS
The Mental Health Centre Penetanguishene project will be delivered using
an Alternative Financing and Procurement (AFP) model. Under the terms
of the project agreement, ITS will receive annual payments from the
province over a 30-year period. These payments cover design,
construction, project financing and building maintenance for 30 years
after construction. The contract with ITS is for $474.1 million in
current (2011) dollars, to be delivered by a fixed completion date.
When adjusting for the anticipated inflation over the 30 year contract
term, the contact value is $634.1 million. The project agreement also
makes ITS responsible for any design issues, project management and
sub-contractor coordination, increases in construction material prices
and labour costs, schedule and project completion delays, and other
related construction risks. In the past, the public sector assumed
these risks; however, the AFP model now transfers these risks to the
private sector - to ITS, in this case.
The province's 30-year maintenance agreement with ITS will ensure that
the physical components of its new facilities — roofing structure,
windows, floors, elevators, heating and cooling systems, and other
components — are kept in excellent working condition over the term of
the agreement. Under the project agreement, if the building requires a
new roof or a new boiler, the private sector replaces and pays for it.
Disponible en français
SOURCE Infrastructure Ontario
For further information:
|Laurene Hilderley-Sibley ||Lyndsie York|
|Mental Health Centre Penetanguishene ||Infrastructure Ontario|
|705-549-3181 ext 2214 ||416-326-9368|