A complicated selection process for the bids on the Stanton Territorial Hospital renewal project has GNWT pushing back the deadline for a decision. Residents will have to wait until September at the earliest to find out when construction will begin. - Mark Rieder/NNSL photo |
Timeline on $300 million hospital project lagging
Tendering process more complicated and slower because of P3 aspect, says GNWT
Mark Rieder
Northern News Services
Friday, July 10, 2015
SOMBA K'E/YELLOWKNIFE
A decision over who will be awarded the contract for the $300 million Stanton Territorial Hospital project will not be made until sometime this fall.
There are three companies vying for job that will nearly double the square-footage of the hospital through a public-private partnership (P3) - a deal that will have the successful company design, build, finance and maintain the hospital. The successful company will recoup its costs through a 30-year agreement that could involve the privatization of services.
The original timeline projected a contract would be finalized in August and construction would begin in September, but that has since changed.
"There's nothing being signed until probably September," said Sean Craig, a P3 analyst with the territorial government, implying that it could even come as late as October.
Craig says there is a more in-depth process when it comes to making a final decision on a P3.
"There's a lot of scrutiny over this," he said.
He added more specifics will be available in early fall "should the GNWT decide to proceed with the project," he said.
"Nothing has been awarded, no plans finalized," Craig stated by e-mail.
According to a document Craig provided to Yellowknifer that outlines how the territorial government embarks on a public-private partnership, a selection committee is responsible for approving the successful company, after which the contract will be approved by the Financial Management Board. The legislative assembly will then be informed of the decision.
If one company isn't approved, the process will take a step backward to the GNWT Capital Planning Process Peer Review.
Another unknown at this stage is how long it will be before construction starts once a final decision is made.
"That would be dependent on who is determined to be the successful bidder for the project," Craig stated. "That would be a detail we would know in the fall."
Yellowknife Centre MLA Robert Hawkins said he is not surprised a decision has been pushed back. He said since the renewed facility is intended to serve the territory for many years to come, he is not concerned if the decision process takes an extra couple of months.
"Just because they need more time to review it doesn't bother me," he said. "This is a generational project, we need to take our time and get it right."
EllisDon Corp., The Plenary Group, and a consortium led by Carillion Canada are the three companies that submitted bids on the contract.
Yellowknifer received a copy of the request for proposals in November, showing the successful proponent will responsible for providing hospital services including general management, the help desk, plant management, utilities management, roads and grounds maintenance, parking management, environmental sustainability, pest control, security and surveillance, and laundry and linen services.
The $202 million Deh Cho Bridge was also built through a public-private partnership and came in over budget from original estimates, leaving the taxpayers on the hook.
