Appendix

Major Capital Projects

Under the Budget Transparency and Accountability Act, a summary of the business case for major capital projects must be made public. A major project is defined as any capital commitment or anticipated commitment that exceeds $50 million. The ministry is committed to the following major capital projects:

Vancouver General Hospital Redevelopment (VGH) — Vancouver Coastal Health Authority

Objective: The hospital redevelopment is to consolidate patient services and clinical expertise to assist in meeting patient care needs over the next 20 years or more.

Cost: Total capital cost is $156 million.

Benefits: Anticipated benefits are new patient areas and consolidation of hospital services within the Centennial Pavilion and the Jim Pattison Pavilion to create a modern and efficient hospital environment for enhanced patient care and accessibility.

Risks: The project could potentially be affected by factors such as delays, changes in economic and market conditions (including potential for labour and material cost escalation and shortages), and technology and/or building code changes.

The project is due for completion by 2007.

Public-Private Partnerships

The ministry and health authorities are committed to ensuring maximum value for health care dollars and are exploring new approaches for capital projects. In accordance with that approach, the ministry and health authorities have pursued public-private partnerships (P3s) to leverage private sector innovation and capital.

Academic Ambulatory Care Centre (AACC) — Vancouver Coastal Health Authority

Objective: The AACC is a state-of-the-art, 11-storey, 365,000-square-foot health care facility planned for the Vancouver General Hospital (VGH) site. The project will be completed through an agreement with Access Health Vancouver (AHV), a team of companies selected through an open competitive process.

Benefits: The AACC will provide single-site access to a range of outpatient (ambulatory) services along with undergraduate and post-graduate medical education facilities, teaching physician/specialist practice offices and related commercial/retail activities. The facility is expected to support several hundred medical students, approximately 580 medical and allied professionals and an estimated 600,000 patient visits annually.

Cost: The capital cost for the project is estimated at $95 million.

Risks: Under the terms of the partnership agreement, each party has agreed to assume the risks that it can manage best at the least cost. During the construction phase, the health authority assumes only those risks related to matters under its control, such as decisions on space allocation. To mitigate these risks, VCHA is working to ensure its planning processes meet specific milestones in the agreed-upon construction schedule.

The AACC is scheduled for completion in 2006.

For more information on the Academic Ambulatory Care Centre project, please see the ministry's website at http://www.health.gov.bc.ca/cpa/publications/index.html.

Abbotsford Regional Hospital and Cancer Centre (AHCC) — Fraser Health Authority and Provincial Health Services Authority

Objective: The Abbotsford Regional Hospital and Cancer Centre will be a new 300-bed facility that replaces the current 202-bed Matsqui-Sumas-Abbotsford (MSA) hospital, which is aging, physically obsolete and not suitable for expansion.

Benefits: The new hospital will provide enhanced programs and services to meet the health care needs of Fraser Valley residents for the next 30 years, and will also help to attract and retain health professionals. AHCC includes integration of a new cancer treatment centre that will be part of the provincial network operated by the BC Cancer Agency.

Cost: The capital cost of the project is estimated at $355 million. The Fraser Valley Regional Hospital District is contributing $71.3 million towards the project.

Risks: This is the province's first P3 project for a major acute health care facility. To mitigate risks, the AHCC team has built on the experience, documentation and advice of other jurisdictions that have completed similar projects. Risks have been allocated between the parties as part of the P3 contractual agreement. For example, the private sector partner is managing the design and construction risk, and payments to the partner will not commence until the facility is ready for occupancy.

Completion of the project is anticipated in 2008.

For more information on the Abbotsford Regional Hospital and Cancer Centre project, please see the ministry's website at http://www.healthservices.gov.bc.ca/cpa/publications/index.html.