Balfour Beatty reaches financial close on North Island Hospitals Project in Canada
03 July 2014
Balfour Beatty, the international infrastructure group, announces today that it has reached financial close for two new acute care hospitals on Vancouver Island, British Columbia, Canada. As part of the Tandem Health Partners consortium, Balfour Beatty Investments will invest C$17.1 million (£9.4 million) into the project, which represents 50% of the equity required, with Connor, Clark & Lunn Traditional Infrastructure Ltd. and Gracorp Capital Advisors Ltd. investing the remaining equity.
This is the first time a green bond has been issued to finance a public infrastructure project in Canada and the first Public Private Partnership (PPP) green bond in North America. Using green bonds to help fund PPP projects adds another dimension of social and environmental responsibility to these partnerships.
The 30 year PPP project on behalf of Island Health will cover the financing, design, construction, and facilities management for the Campbell River Hospital and Comox Valley Hospital. Construction services will be delivered by Graham Design Builders LP. Construction activity is expected to commence immediately with completion estimated in late 2017.
In addition, Balfour Beatty Communities and Honeywell will deliver facilities management services over the 30-year concession period.
Ian Rylatt, Balfour Beatty Investments CEO said, “We are very pleased to reach financial close on this, our second project in the Canadian health care market this year. Coupled with the BC Children’s & BC Women’s Redevelopment project also based in British Columbia, the North Island Hospitals project is another significant step in the development of our investments business in Canada.”
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Notes to editors:
The North Island Hospitals Project includes:
- A 153-bed Comox Valley hospital in Courtenay near the Lerwick/Ryan road intersection
- The Comox Valley work will create approximately 1,000 direct jobs and over 750 indirect jobs in industries supplying goods and services used in construction
- A 95-bed Campbell River hospital at the existing hospital site on the corner of Birch Street and 2nd Avenue
- The Campbell River work will create approximately 900 direct jobs and over 650 indirect jobs in industries supplying goods and services used in construction
- Both new hospitals will continue to provide the same acute care services currently being delivered at the Campbell River and Comox Valley hospital sites.
What is a Green bond?
Green bonds provide funding for projects that show specific environmental responsibility and incorporate innovative environmental benefits. For a project to qualify for green bonds it must achieve excellence against a range of industry standards and initiatives. In relation to the North Island Hospitals Project, these green bonds relate to achievement of, amongst other things, Leadership in Energy and Environmental Design (LEED®) Gold Certification, commitment to stretching energy and greenhouse gas targets and compliance with the British Columbia Wood First Act.
About Balfour Beatty
Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.
Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK and the USA, with developing businesses in Australia, Canada, the Middle East, South Africa and South East Asia.
With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors focus on infrastructure - transportation (roads, rail and aviation), power and energy, water, and complex buildings (both commercial and social).
Balfour Beatty employs 40,000 people around the world.