The new hospital at North Battleford won’t open on time.
The government has received notice from Access Prairies Partnership (APP) that a subcontractor won’t deliver on time.
It delays the June 1 opening by two to three months.
The Saskatchewan Hospital North Battleford project is a public-private partnership (P3) of which APP is the consortium of companies involved.
Despite the delay, Premier Scott Moe remains confident in P3 projects.
“The cost of this delay will be borne by the consortium not the people of Saskatchewan,” Moe confirmed. “These costs would be borne by government as changes or challenges come in every construction process had we gone the traditional model.”
According to information from government, the project agreements means it’s the private sector partners who are assigned the responsibility for risks and all
related costs to deliver the build on time and on budget.
There are mechanisms in place for government to recoup costs relative to delays too.
“This delay is challenging from a service perspective but I should add that all the people will still receive the services that they have been receiving in the meantime,” Moe maintained.