The Weeneebayko Area Health Authority (the "Hospital") hospital project is a progressive design-build finance project to construct a new hospital, long term care home, hostel, staff residence and related works in Moosonee, Ontario and an ambulatory care facility in Moose Factory, Ontario. The new hospital will replace an existing hospital in Moose Factory, Ontario. The Project is Infrastructure Ontario’s first progressive design-build finance project and the first progressive project in the social infrastructure space.
The project was procured pursuant to an innovative two step request for proposal (RFP). Infrastructure Ontario and the Hospital then entered into a Development Phase Agreement with the preferred proponent, Pomerleau Inc., on January 12, 2023. Under the Development Phase Agreement, Pomerleau advanced the design of the facilities and the parties negotiated a price for the construction of the facilities. The negotiations between Pomerleau Inc., the Hospital and Infrastructure Ontario were successfully concluded 21 months later. The design of the facilities was also substantially advanced during that time. On October 3, 2024, a project company affiliated with Pomerleau Inc. and the Hospital, entered into a Project Agreement for the completion of the design, the construction and the partial financing of the facilities, on terms that are consistent with the terms of a traditional design-build finance agreement in Ontario, refined to address certain project specific risks and matters.
The project is remote with limited access, and serves seven indigenous communities. The project includes mechanisms to ensure that the construction of the facility includes benefits to the communities that it will serve, and to ensure that the design of the facility is responsive to the priorities and needs of those communities.
Fasken was legal counsel to Infrastructure Ontario and the Hospital throughout the procurement process and development phase of the project, from the RFP stage, to the Development Phase Agreement, and to the finalization and execution of the Project Agreement. Fasken was responsible for creating a framework for Indigenous participation in the project, and worked closely with Infrastructure Ontario to develop a framework for Progressive Design – Build – Finance – Maintain (DBFM) documentation, and drafting for this unprecedented project. Fasken also supported Infrastructure Ontario and the Hospital in negotiations during both the RFP and development phase and devised innovative regimes to address project-specific risk and risk allocation issues.
The Fasken team comprised, at various stages of this project, Brian Kelsall, Tom Barlow, Ella Plotkin, Adam Lewinberg, Andrew Jerjian and Shazad Omarali.
Jurisdiction
- Ontario
