NLIS 5
September 13, 2001
(Health and Community Services)
(Works, Services and Transportation)

Government provides update on development of Fogo Island Health Centre

The Government of Newfoundland and Labrador is providing today an update on the development of the Fogo Island Health Centre.

"We have decided we will not award the tender as currently designed," said Percy Barrett, Minister of Works, Services and Transportation. "One bid was received on the initial tender and it is considerably over budget. The lone bid was $12.5 million which is nearly 50 per cent over the original budget of $8.6 million."

Escalating cost trends in the construction industry along with higher costs associated with construction on Fogo Island have contributed to the cost over-run. Government will immediately initiate a re-design and a new tender process for the health facility. This will be completed in phases to allow for the work to begin as soon as possible.

"Officials from my department and from Works, Services and Transportation will work with representatives of the Central East Health Care Institutions Board and Health and Community Services Central to complete plans for the re-design of the facility," said Julie Bettney, Minister of Health and Community Services. "This facility will meet the health needs of the people of Fogo Island."

Once the design process is complete, government will issue a new tender by mid-December 2001 for Phase I of the project which includes the foundation work. This tender will be awarded by February 2002 with construction to start in May. The tender for Phase II (main building construction) will be issued September 2002.

"I want to assure the residents of Fogo Island that this government is committed to the construction of a new health centre on Fogo Island," said Gerry Reid, MHA - Twillingate Fogo. "I have met with representatives of the communities and have reaffirmed this commitment."

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