Executive Council
Transportation and Works
Health and Community Services
November 14, 2018

Procurement Begins on New Adult Mental Health and Addictions Facility

The procurement of a new 94-bed mental health and addictions facility began today with the release of a request for qualifications (RFQ) to establish an industry short list of businesses interested in designing, building, financing and maintaining the new facility.

The facility will be constructed as an extension of the Health Sciences Centre in St. John’s.

Teams of businesses that respond to the RFQ will be evaluated on four criteria – team lead, design-builder, service provider and financial capacity. A short list of proponents will receive the Request for Proposals (RFP) in spring 2019.

The RFP will then require the proponents to submit project proposals that will include details on the construction and maintenance of the new facility, along with a new parking garage.

Construction of the facility is scheduled to begin in 2020. Site work is anticipated to begin next summer with the demolition of the Agnes Cowan Hostel, which will be replaced during construction of the new facility.

A value-for-money assessment completed by EY earlier this year recommended the Provincial Government partner with the business community to procure the new facility. The report concluded that this approach would result in cost savings of 12.3 per cent over 30 years compared to the traditional procurement methods.

The RFQ marks the fourth infrastructure project where government has used this procurement approach. Other projects are:

  • A long-term care home in Corner Brook, which is currently under construction and on schedule to open in 2020. A value-for-money assessment concluded that partnering with the private sector will result in savings of 10 per cent over the 30-year agreement for a total estimated savings of $14.6 million;
  • 60-bed long-term care homes in Gander and Grand Falls-Windsor. The successful proponent will be selected in spring 2019, leading to construction beginning later in 2019; and
  • A new 164-bed Western Memorial Regional Hospital in Corner Brook. The successful proponent will be announced in spring 2019, with construction beginning later in 2019.

The new adult mental health and addictions facility delivers on commitments in The Way Forward to strengthen the province’s economic foundation and deliver better services and better outcomes for residents. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.

“Our government has a solid plan for improving mental health and addictions services that includes this new 94-bed facility. Our plan is creating awareness, supporting better management of an individual’s mental health, and helping to end any associated stigma. We continue to find ways to transform the way mental health and addictions services are delivered here in Newfoundland and Labrador.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador

“Value for money assessments on major infrastructure projects in Gander, Grand Falls-Windsor and Corner Brook concluded that using a design, build, finance and maintain contract was the best approach for those projects. By using this approach again, we look forward to delivering even more healthcare infrastructure in a way that is responsible to all taxpayers.”
Honourable Steve Crocker
Minister of Transportation and Works

“The new mental health and addictions facility will benefit the lives of many Newfoundlanders and Labradorians. I am pleased to see progress being made on its future construction. Mental health and addiction affects everyone and are not defined by income, age or geography. People need to have ready access to services when and where they are needed.”
Honourable John Haggie
Minister of Health and Community Services

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Learn more

The Way Forward

The Way Forward: A Multi-Year Plan for Infrastructure Investments PDF icon

Provincial Government to Partner with Private Sector on New Adult Mental Health and Addictions Facility

Premier Ball Announces Plan for New Adult Mental Health and Addictions Facility and Expanded Community-Based Services

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Media contacts
Jason Card
Office of the Premier

Rod Drover
Transportation and Works
709-729-1758, 730-4607

Tina Newhook
Health and Community Services
709-729-1377, 728-2837

2018 11 14                              2:40 p.m.