The green bond issued to finance Penticton Regional Hospital’s new patient care tower and parkade is one of only two issuances to date for B.C. public-private partnership projects, Finance Minister Michael de Jong announced today.
This issuance builds on the success of the North Island Hospitals Project in 2014, which was the first time a green bond funded a public-private partnership in North America and the first time a green bond financed public infrastructure in Canada. Green bonds are similar to traditional bonds, but the proceeds are used exclusively for projects with environmental benefits.
This 32.2-year bond was issued by EllisDon Infrastructure and raised approximately $130 million toward construction of the new tower. Based on the EllisDon bid, the capital budget for the project is now $312.5 million. The Okanagan-Similkameen Regional Hospital District is providing $117 million, the South Okanagan Similkameen Medical Foundation is contributing $20 million, Interior Health is providing $14.4 million and the provincial portion is $161.1 million.
The bond issue was entirely subscribed by one Canadian life insurance company that was attracted by B.C.’s triple-A credit rating, leadership in green building and innovative approach to public-private partnerships.
The new patient-care tower will be engineered to Leadership in Energy and Environmental Design (LEED) Gold certification standards, featuring wood finishes in support of the Province’s Wood First Initiative. EllisDon Infrastructure was selected by Interior Health as the preferred proponent for the partnership. EllisDon Infrastructure began site work in May, with major construction on the tower expected to begin in August 2016. The tower is scheduled to open for patients in spring 2019.
The provincial government determined the technical criteria necessary to classify the project as green. Criteria included LEED Gold certification. Altus Group Limited, a recognized industry-leading advisor for public- and private-sector infrastructure projects, has confirmed that the project’s green attributes meet the criteria to certify the project as green. A copy of the third-party report done by the Altus Group is available by contacting: firstname.lastname@example.org.
Michael de Jong, Minister of Finance –
“B.C. is a recognized leader in innovative public infrastructure delivery through partnerships with the private sector. Using a green bond to fund the new patient-care tower and parkade at Penticton Regional Hospital adds another dimension of social and environmental responsibility.”
Terry Lake, Minister of Health –
“The Province is building health capacity through new centres like the Penticton patient-care tower, which will offer first-rate health care, as well lead the way environmentally through strong stewardship in its LEED construction standards.”
Dan Ashton, MLA for Penticton –
“The new Penticton patient-care tower will provide residents with state-of-the-art patient care, using the latest technologies in green building and reaching the highest standards for health-care infrastructure. By using sustainable materials like B.C. wood in finishes, we are both meeting our environmental responsibilities and providing patients with healing, natural spaces to receive health care.”
- The new patient-care tower will include:
- A surgical services suite with five operating rooms and six minor procedure rooms.
- 84 new single inpatient rooms for a total of 155 inpatient beds, a net increase of 15 beds from the current level.
- A new ambulatory care centre featuring outpatient services like cardiology, neurology, orthopedics, maternal-child clinics, respiratory, pre-surgical screening, satellite medical imaging and a laboratory for specimen collections.
- In addition to construction, EllisDon Infrastructure will be responsible for building maintenance, lifecycle repair and renewal and a portion of the project financing over the life of the contract – a 30-year term.
- Clinical, housekeeping and food services will be provided by Interior Health.