Main entrance of the Victoria Hospital. (File Photo/paNOW Staff)

By Jaryn Vecchio

Provincial Funding

Mixed reactions to $898M construction cost for P.A. hospital expansion project

Feb 9, 2024 | 5:00 PM

An updated price tag for construction on Prince Albert’s Victoria Hospital Expansion project has caught some people off guard.

The Government of Saskatchewan announced last week that they had come to terms on an agreement with PCL Construction to build the addition for $898 million.

When the province first announced the project back in 2020, they committed to invest at least $300 million.

In an email to paNOW, SaskBuilds said the contract was reviewed before it was approved and the increase makes sense.

“An Independent Cost Consultant was hired to assess the bid against current market conditions. The Independent Cost Consultant reviewed PCL’s financial submission and found that the cost is reasonable and appropriate,” read the email.

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SaskBuilds also compared the project to similar ones in British Columbia, Manitoba, and Ontario. They claim the Victoria Hospital project is costing around $2,044 per square foot, while the other projects range from $2,700 to $3,800.

Prince Albert’s mayor Greg Dionne said he isn’t surprised by the cost due to inflation. He provided an example of just how much prices are climbing by citing a new fire truck the city purchased for $900,000 in 2022. A year later, the price tag for that same truck was $1.3 million.

Despite the drastic increase, the province is committed to covering the entire construction bill.

The Boreal Healthcare Foundation (BHF), which looks after fundraising for equipment and furniture at the hospital, explained their commitment to the project hasn’t changed.

Public Reaction

The reaction to the cost from residents has been mixed.

Since the project will be expanding healthcare services for Prince Albert and Northern Saskatchewan, many appear to be okay with the price tag.

“This part of the province needs this badly,” read one comment on a public Facebook page focused on Prince Albert.

Another commenter wrote, “If you build now it will be cheaper. In 5 years, it would be double the price. Go big or go home.”

Others weren’t as happy with one person believing the project is a waste of money.

“Wait times will still be ridiculous, just more rooms to wait which means more people will come and not enough staff (to see them).”

Others compared the price to other projects including the Jim Pattison Children’s Hospital which opened in 2019. The province had initially committed $200 million to the project but ended up allocating $257 million.

“Why is this one costing close to a billion? Something doesn’t seem right.”

Canadian Taxpayers Federation

The confusion from some people is justified, according to the Canadian Taxpayers Federation (CTF) that agreed going from a $300 million price to nearly $900 million is a big jump.

“We all know inflation the last couple of years… even though it was hard for everyone, it wasn’t 300 per cent,” said Gage Haubrich, the Prairie Director for the CTF.

He also explained a potential tax hike isn’t out of the question to help pay for a massive project like this.

“The government is back in deficit this year, $250 million, after thinking they were going to have a billion-dollar surplus, so if they’re going forward with projects even if they’re getting more expensive, they have to look at ways to cut costs and not put it on taxpayers,” Gaubrich added.

He suggested the province should reallocate funds from other budgets before considering any tax increases.