January 7, 1999
(Works, Services and Transportation)

Government will borrow funds to construct Harbour Breton Health Care facility

Rick Woodford, Minister of Works, Services and Transportation, announced today that government will borrow funds to construct the new health care facility building at Harbour Breton as opposed to financing the project under the Immigrant Investor Fund (IIF).

The minister said the decision means that government will therefore not accept any of the bids that were submitted in response to the department's original tender which called for the construction of the facility under a lease arrangement.

Mr. Woodford explained that the federal government (under the IIF) requires the use of an operating lease arrangement as opposed to a capital lease. He said the use of public-private partnership as an approach to financing public infrastructure is an extremely complex issue.

"While the tender, which was released, was intended to answer all questions we are now doing a further examination to ensure that we have a full and complete understanding of this approach," said Mr. Woodford. "It was not possible for us to do a complete evaluation until the bids were received. We have now determined that it is necessary for us to meet with the federal government to clarify a number of issues. This cannot be accomplished immediately and therefore we are retendering Harbour Breton using traditional methods to avoid any delays. We are confident that these matters can be addressed in short order and we will proceed with the other projects that were announced earlier including Fogo, Bonne Bay and Grand Bank."

The minister stated he is confident that government can proceed on schedule with these other projects.

Mr. Woodford said a new tender call will be made at the earliest possible opportunity.

The minister did apologize for any inconveniences that may have been caused to the companies who submitted bids under the original tender proposal. However, he added that all parties now have an opportunity to respond and to submit wholly new bids.

"Retendering requires four to six weeks and this time frame will not jeopardize the scheduling for the project," said Mr. Woodford. "I am confident that this facility will be fully completed and in operation by February of the year 2000."

The minister said he is confident that this announcement will be well received by all residents of the Connaigre Peninsula who will benefit from this facility being constructed at Harbour Breton.

The new facility will provide a continuum of health care services including ambulatory care, clinic space, physician offices and emergency care services. It will include six acute care inpatient beds, 14 long-term care beds, laboratory services, diagnostic imaging services, rehabilitation services and community health services. It will be a single story structure with a total floor space of approximately 30,000 square feet.

Mr. Woodford said his department will remain involved during the construction of the facility to ensure the interest of the Central West Health Corporation and the Department of Health and Community Services in obtaining a quality facility are met.

        Media contact: Gary Callahan, (709) 729-3015.

1999 01 07 3:25 p.m.