Mr. Speaker, I have a Return to Written Question 418(3) asked by the Member for Yellowknife Centre on February 7, 2018, to the Minister of Finance regarding the new Stanton Hospital funding arrangements.
The project budget for the new Stanton Hospital is $350 million. Of this total budget, $290 million is the estimate for construction costs. Approximately 52 per cent of these construction costs, or $152 million, is financed by the Government of the Northwest Territories, while the remaining 48 per cent, or $138 million, is financed by Boreal Health Partnership. As of November 30, 2017, the GNWT has made quarterly payments, based on amounts certified by an independent engineer, of $115 million.
The GNWT will begin making service payments to the Boreal Health Partnership on December 1, 2018. The service payment for 2018-2019 will be $6.716 million. It is estimated that the average amount payable for a full year of service will be approximately $18 million. Over the 30-year life of the agreement, the total amount of the service payments will be $598.4 million.
The total amount paid through service payments to the Boreal Health Partnership over the 30-year agreement is broken down into four categories:
$45.9 million to cover lifecycle costs;
$255.5 million to cover the maintenance of the facility;
$227 million to cover the cost of servicing the debt; and
$70 million as a return on equity of 12 per cent.
