Value for Money report released

TORONTO-Infrastructure Ontario and Sunnybrook Health Sciences Centre announced that Vanbots Construction Corporation and its partners have achieved financial close, which signals that all contractual steps have been completed for Sunnybrook's M-Wing Shell and Perinatal and Gynaecology project at the Bayview Avenue campus.

“A tremendous milestone has been reached- a milestone that paves the way for improved access to health care,” said Minister of Public Infrastructure Renewal David Caplan. “The final contract is signed demonstrating that the McGuinty government has delivered on its commitment to the community.” 

“The redeveloped facility will allow Sunnybrook Health Sciences Centre to provide a greater level of care and to increase its capacity to treat seriously ill newborns and mothers with high risk pregnancies,” said Minister of Health and Long-Term Care George Smitherman.  “By investing in hospitals, we are helping to ensure that first-class health services are available to all Ontarians.”

“Sunnybrook Health Sciences Centre is an important part of our community and we are pleased that this redevelopment project is underway,” said Kathleen Wynne, Don Valley West MPP. “The expansion will provide much-needed space for the Neonatal Intensive Care Unit which is one of three units in the Toronto area treating critically-ill newborns.”

The Sunnybrook Health Sciences Centre expansion project will create four additional floors above the existing clinical services wing. Two of the new floors will accommodate an expanded Perinatal and Gynaecology Program, providing for 68 beds, 48 bassinets and approximately 4,250 births per year.  A state-of-the-art Neonatal Intensive Care Unit will also be located in the new facilities. This project will expand Sunnybrook's capacity to provide care for some of the most critically-ill newborns and high-risk pregnancies in the province.

Currently, the Perinatal and Gynaecology program operates from Women's College Hospital in downtown Toronto.  Once construction of the M-Wing Shell and Perinatal and Gynaecology project is completed, the Perinatal and Gynaecology program will move permanently to Sunnybrook's Bayview Avenue campus.

The building team, led by Vanbots Construction Corporation, also includes financing arranged by Stonebridge Financial Corporation.

The deal commits Vanbots Corporation to build and finance the hospital's redevelopment project for $142 million, which will be paid only when construction is completed.  

PricewaterhouseCoopers LLP completed a value for money assessment and projected an estimated $14.1 million in savings compared to the estimated cost using a traditional procurement model.  The assessment was made on the $142 million construction contract for the project.

The Value for Money (VFM) report is available on Infrastructure Ontario's website, along with the project agreement.  The VFM report provides a summary of project costs including the cost of the contract with Vanbots Corporation and transaction and other ancillary costs.

The estimated total cost of this phase of the hospital's redevelopment project is $188.6 million.  This includes the fixed construction contract with Vanbots Corporation as well as other estimated costs such as furniture, equipment, permits, architectural and engineering fees, transactional and project management fees.

Construction began in May 2007 and is expected to be completed in 2010.

“This is an exciting time for everyone at Sunnybrook Health Sciences Centre.  The redevelopment of this facility will ensure that our physicians, nurses, staff and volunteers continue to deliver the best possible care to some of our most fragile patients,” said Leo Steven, President and CEO of Sunnybrook Health Sciences Centre. “The agreement will ensure that our hospital is built not only to the highest standards, but also on time and on budget.”

Infrastructure Ontario is working with Sunnybrook Health Sciences Centre to redevelop the hospital, which will remain publicly owned, publicly controlled and publicly accountable.  Infrastructure Ontario is a Crown corporation dedicated to managing some of the province's larger and more complex infrastructure renewal projects - ensuring they are built on time and on budget. 

This project is guided by principles outlined in the Province's Building a Better Tomorrow framework, which ensures public ownership of core assets such as hospitals, schools, and water and wastewater facilities.  The Sunnybrook Health Sciences Centre project is one of many infrastructure projects being upgraded and modernized under ReNew Ontario, the government's five-year, $30-billion plus public infrastructure investment plan.  

Visit www.infrastructureontario.ca for more information.

Contacts:

Amy Tang  
Minister's Office
Public Infrastructure Renewal 
416-325-4048

Jennifer Sclisizzi
Infrastructure Ontario
416-325-7409

Laura Bristow
Sunnybrook Health Sciences Centre
416-480-6100 ext.2663

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