Gov’t not on hook to find new maintenance provider for Saskatchewan hospital

SaskBuilds says APP will ensure maintenance services are in place for a new Saskatchewan hospital with no additional cost. Government of Saskatchewan / Supplied

The SaskBuilds Corporation says construction and completion of the new Saskatchewan Hospital North Battleford (SHNB) will not be affected by Carillion’s collapse.

The U.K.-based construction company is entering liquidation.

READ MORE: Thousands of Canadian jobs at risk after U.K. construction company collapses

Carillion was designated to provide facility maintenance at SHNB over the 30-year maintenance and operations phase of the project.

Saskatchewan government officials said their contract for the public-private partnership (P3) construction model project is with Access Prairie Partners (APP).

Carillion is one member of the consortium of companies that is building, financing and maintaining the structure.

SaskBuilds told Global News that one of the benefits of the P3 model is that risks and associated costs are the responsibility of the private sector partners, not government.

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Officials said APP is working to ensure that a provider is in place for SHNB over the 30-year maintenance and operations phase of the contract with no additional cost or delay.

READ MORE: Carillion Canada, major hospital and road contractor, says it’s soldiering on despite U.K. collapse

The provincial government is investing $407 million into the publicly-owned and operated facility located in North Battleford.

Under the P3 model, APP is responsible for delivering the SHNB on time and on budget. Failure to do so would result in financial penalties for the consortium.

Construction on the new provincial psychiatric facility began in September 2015 and is scheduled to be completed this spring.

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