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Phase 2 of Burnaby Hospital redevelopment cancelled by provincial government

Click to play video: 'Controversy and uncertainty over cancellation of contract for Burnaby Hospital redevelopment'
Controversy and uncertainty over cancellation of contract for Burnaby Hospital redevelopment
Controversy has erupted over the NDP government's decision to cancel a contract for phase 2 of the redevelopment of Burnaby Hospital. As Aaron McArthur reports, it's not the only project that has been, as the government says, 're-paced.' – Apr 30, 2026

The massive redevelopment of Burnaby Hospital appears to be in jeopardy, after a construction contract was cancelled by the province.

Phase 2 of the project consists of a new inpatient tower with 160 beds and a cancer care centre.

It was one of several that the provincial government paused in Budget 2026 and framed as re-pacing.

However, staff at the hospital recently learned that the multi-party Alliance contract, awarded two years ago, has been cancelled completely.

In a statement on Instagram, Kristy James, president and CEO of the Burnaby Hospital & Community Foundation, said that the board was “deeply disappointed” to learn that the government cancelled the Phase 2 project.

“We have been consistently reassured by our Burnaby MLAs and Minister Ma that this project is not cancelled – but a terminated contract with no confirmed start date sounds like a cancellation,” James said.

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“If the provincial government, including our local MLAs, are truly committed to this project, we are asking for a firm start date, and a clear explanation of why Burnaby was de-funded after this project was submitted within a Treasury Board-approved budget.”

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James stated that Burnaby has one of the lowest bed counts in all of B.C. and it is the third-largest city, serving more than 500,000 residents.

“We had gone through the approval process, the community stepped up and raised over $55 million for our redevelopment,” she added.

“It is time for the government to do what they promised and finish building Burnaby Hospital.”

Click to play video: 'Burnaby Hospital redevelopment delayed'
Burnaby Hospital redevelopment delayed

The opposition took aim at the infrastructure minister about the news in question period on Wednesday.

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“Now with no contractors, no architects, no consultants, which puts this project back to square one and on the shelf with the other broken promises,” said Misty Van Popta, BC Conservative infrastructure critic.

“Will this minister stand up today and admit that her budget has effectively cancelled these projects?”

Bowinn Ma, B.C.’s infrastructure minister, said the province is facing fiscal pressures that require careful choices to protect the services that people rely on.

“The Burnaby Hospital Phase 2 project was re-paced, and as a result, the Alliance contract is being cancelled,” Ma said.

“But although the construction contract has been cancelled, planning work will continue by the Fraser Health Authority and the province.”

Phase 1 of the redevelopment, a new health-care pavilion, opened to the public last month.

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