New Budget Concerns for Civic Hospital Project

Ontario’s infrastructure minister has announced that the province is investing close to $10 billion in The Ottawa Hospital’s new Civic campus, which raises more questions about the overall cost of the delayed project – and what will be expected from the community.

Minister David Piccini shared the provincial investment figure Wednesday afternoon during a meeting of the Ontario Legislature’s standing committee on heritage, infrastructure and cultural policy.

He was questioned by Stephen Blais, the Liberal MPP for Orléans who serves as his party’s infrastructure critic. Blais pressed Piccini to clarify what the total cost of the hospital project would be. The minister did not respond directly.

When asked again, Piccini said, “The investments that we’re making that are putting members to work right now on an investment of just shy of $10 billion towards the hospital,” before being interrupted.

The two then debated whether or not the project is “on time.”

‘An immense challenge ahead’

It’s not new news that the province is committing funds toward replacing the Civic campus. Ontario had previously agreed to cover $2.1 billion of the costs, contingent on Ottawa contributing $700 million.

In 2022, city council was asked to provide $150 million out of that $700 million, while a fundraising campaign would make up most of the difference. The Ottawa Hospital Foundation informed on Thursday that it has raised $404 million so far.

However, for Blais, Piccini’s comments on Wednesday – and what they implied about a rising total budget estimate for the project – raised worries about Ottawa’s ability to pay its full share.

“We’ll go from $700 million to let’s call it roughly $2.25 billion to $2.5 billion,” Blais stated during the committee meeting. “That is a significant increase. Ottawa does not have a corporate business community like Toronto.”

“That will require an enormous effort.”

Blais then challenged Piccini on how he could explain “a five-X increase in costs.” A previous estimate put the price tag for the new hospital at $2.8 billion.

“Increase in costs,” Piccini replied when asked by Blais on Wednesday, mentioning supply chain issues. “Also, municipally imposed fees, which increases the relative share.”

In response to a request for comment regarding Piccini’s financial figure, Ontario’s Ministry of Health issued an email stating that creating this new campus is complex and they continue working with The Ottawa Hospital and Infrastructure Ontario “to ensure it is competitively priced and aligned with long-term health service needs.”

The ministry didn’t confirm Piccini’s public figure but highlighted a planning fund worth $30 million provided by the province – “investments that Liberals and NDP have voted against.”

Construction Set To Intensify Soon

Building work on the main hospital was initially scheduled to start in 2024.

There were hopes for opening in 2028; however, earlier this year an adviser told city councillors it may be delayed well into 2030s.

the new campus are finalized and construction timelines along with project costs are being worked out.

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