Released on May 5, 2015P3 Model to Save Taxpayers $16 Million
Government today released the value for money report for the Swift Current Long-Term Care Centre.
This is the provincial government’s first public-private partnership (P3). The P3 model will save taxpayers more than $16 million, or a more than 13 per cent, compared to a traditional model. These savings include P3-related costs such as private financing.
“Our government is committed to enhancing the quality of life for Saskatchewan people by investing in critical infrastructure,” SaskBuilds Minister Gordon Wyant said. “The P3 model is not only achieving savings, but is an important reason construction is moving forward on-time and on-budget. We are looking forward to its opening in spring 2016.”
A total investment of $108.5 million is being made in the facility including the cost of design, construction, finance and maintenance in 2014 dollars. The cost of a traditional build is estimated at $125 million. The report concludes that while other P3 related costs were approximately $1 million higher, using a P3 results in savings of $7 million on construction and maintenance costs, and a further $10 million as a result of appropriate risk transfer.
The value for money report and the project agreement are posted on the SaskBuilds website at www.saskbuilds.ca. This is in keeping with the province’s commitment to transparency, and Canadian best practice, by releasing the details of the agreement following financial close.
The new facility will replace three aged facilities: Swift Current Care Centre, Prairie Pioneers Lodge, and Palliser Regional Care Centre. Once complete, the new facility will provide a modern, home-like accommodation for 225 residents in the community.
The Cypress Health Region will maintain full ownership of the facility and will operate all aspects of the direct care provided within the facility. Health region staff will provide services for residents and maintain the provincial standards and guidelines that have been set for long-term care programs and services within the province.
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