The contract with Plenary Health Care Partnerships

Plenary Health Care Partnerships has signed a contract with Humber River Regional Hospital to design, build, finance and maintain their new hospital.

The Plenary Health Care Partnerships team includes:

  • Developer: Plenary Group (Canada) Inc./HCP Social Infrastructure (Canada) Limited/Innisfree Ltd.
  • Design: HDR Architects/C.F. Møller Architects
  • Construction: PCL Constructors Canada Inc.
  • Facilities Management: Johnson Controls LP
  • Financial Advisor: RBC Capital Markets 

Under the terms of the project agreement, Plenary Health Care Partnerships 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 Plenary Health Care Partnerships is for a fixed price of $1.75 billion in today's dollars to be delivered by a fixed completion date. The new Humber River Regional Hospital will be delivered using Infrastructure Ontario's Alternative Financing and Procurement method. This method transfers most project risks to Plenary Health Care Partnerships.

For instance, the project agreement makes  Plenary Health Care Partnerships 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, these risks were the responsibility of the public sector.

The province's 30-year maintenance agreement with Plenary Health Care Partnerships will ensure that the physical components of this new facility - 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. The public sector has built in a 30-year guarantee for these physical features.

Overall Payment to Hospital Infrastructure Partners

Over the 30-year life of the contract, the total payments to Plenary Health Care Partnerships, when adjusted for anticipated inflation, will be $2.59 billion. Annual payments to Plenary Health Care Partnerships are performance-based. Payments can be withheld if Plenary Health Care Partnerships does not meet the agreed-upon performance standards. 

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