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Saskatchewan Hospital North Battleford Project

The new Saskatchewan Hospital North Battleford (SHNB) is a provincial psychiatric facility that will replace the existing facility that is over one century old. The new 284-bed SHNB will have 188 beds replacing the existing 156-bed facility, and 96 secure beds for male and female offenders living with mental health issues.

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1. When did the project start?

  • Site preparation work began in August 2015 with construction officially beginning in September 2015.
  • The project will be completed by June 2018.
  • This provincial psychiatric facility will open on-time and on-budget. P3 contracts impose significant penalties on builders if construction gets behind schedule.
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2. What are the benefits of the new facility?

  • The new 284-bed facility will have 32 more beds than the existing hospital and includes 96 secure beds that will provide support for offenders living with mental health issues. 
  • This is an innovative approach for delivering mental health care and supports to two separate groups of people with significant psychiatric rehabilitation needs.
  • A ‘One Operator Model’ is currently planned. This means that Prairie North Health Region will manage the entire facility.
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3. Public-Private Partnership (P3)

  • The new facility will be constructed through a design-build-finance-maintain public-private partnership (P3) procurement model.
  • With a P3, the same team that builds the centre must maintain it in “like new” condition for 30 years. This encourages the use of high-quality materials and long-term thinking in design to reduce costs into the future.
  • Saskatchewan business groups have endorsed P3s as a way to improve infrastructure and create jobs. This includes:
    • The Saskatchewan Chamber of Commerce
    • The Regina Chamber of Commerce
    • The Saskatoon Chamber of Commerce
    • The North Saskatoon Business Association
    • The Swift Current and District Chamber of Commerce

Operations and maintenance

  • In addition to construction costs, the builder is responsible for operation and maintenance of the building and the transfer of risk.
  • Transfer of risk means that taxpayers are protected from any project cost overruns. These costs will be incurred by the builder.
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4. Project Team

  • The lead designer and builders are Graham Design Builders and Carilion Construction.
  • Eight Saskatchewan businesses are already at work on the new SHNB, including Clifton Associates and G&C Ready Mix out of North Battleford.
  • This project will have significant economic benefits for the province by creating more than 1,500 jobs in Saskatchewan.
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5. Project Cost

  • A total investment of $407 million is being made, including the cost of design, construction, finance and maintenance.
  • A report from Ernst & Young confirms total P3 savings are $90 million (18%) over the life of the contract, including all factors such as financing and 30 years of maintenance.
  • A P3 saves taxpayers $15 million on construction alone. A traditional build was expected to cost $237 million, but a P3 approach drops that to $222 million.
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6. Project Facts

Building Hospital- North Battleford Infographic

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