N.S. being lobbied to use P3 model to overhaul Halifax hospitals, NDP says

Nova Scotia's Liberal government is being warned off using a public-private partnership model in its massive redevelopment of Atlantic Canada's largest research hospital, following the release of government documents by the third party NDP.

NDP Leader Gary Burrill said Thursday that a freedom of information request submitted by his party shows the government is being heavily lobbied by large firms interested in participating in a so-called P3 project at the QEII Health Sciences Centre in downtown Halifax.

Burrill said the government has had reservations before and should have again.

"We know that when it came to the privatization of the registries the government went a long way down the road before they realized there would be a lot of concern about this and they backed out. We know there was serious consideration given to a P3 model for the highways . . . and they backed out."

Burrill said it's important to realize that some major players in the development world are now applying pressure to the government.

"We think it's very important for the same public concern and the same public pressure to be raised now because it is the wrong way to go." he said.

Consulting firm assessing P3 option

The government has been upfront about a possible P3 option since announcing the project in April 2016. It has hired consultant Deloitte to examine whether a P3 option is viable.

Premier Stephen McNeil said while the option is under consideration, no decision has been made.

"Nothing has been brought to me at this point in terms of which option may be the best one to use," McNeil said. "We'll look at all funding models when it comes to building these institutions and which ever one makes the most sense we will go with."

The NDP received 700 pages of documents in a request that only asked for information on P3s.

A 17-page sampling released by the party shows interest expressed and information on P3's provided by Toronto-based engineering firm Mott MacDonald, and Kasian Architecture Ontario Inc.

The NDP documents also show that as of the fall of 2014, the hospital project was estimated to cost about $383 million.

That includes $138 million for work at the Dartmouth General Hospital — a number the government has released publicly.

On Thursday, McNeil promised to release an updated overall number to reporters, although no figure was later provided.

A government email said the $383 million figure is "no longer accurate" because it was three years old.

"We are still in the master planning and programming phase of the QE II redevelopment project. Since the project was announced in 2016, the province has been clear that updated cost estimates will be provided as they become available."

Under the government's plan, the aging Centennial and Victoria buildings in downtown Halifax are to be taken out of service beginning in 2020 with demolition slated to begin in 2022.

The government has said the overall project timeline is between five and seven years.