The provincial government is cancelling a multiparty agreement signed less than two years ago to build Phase 2 of the Burnaby Hospital redevelopment project, raising concerns the project has been cancelled.
“We have been consistently reassured by our Burnaby MLAs and [Infrastructure] Minister [Bowinn] Ma that this project is not cancelled — but a terminated contract with no confirmed start date sounds like a cancellation,” Burnaby Hospital Foundation president and CEO Kristy James said in a statement Wednesday after hearing the news.
‘Milestone’ agreement
The $1.7-billion Phase 2 project was approved by the province’s treasury board in 2023, and the alliance development agreement was signed and approved on June 21, 2024, with core partners Fraser Health, the Provincial Health Services Authority (B.C. Cancer), PCL Constructors Westcoast Inc., Parkin Architects Western Ltd. and Infrastructure B.C.
The agreement was celebrated as a milestone moving the project closer to design and construction.
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“As one of the largest cities in the province, ensuring increased access to health care in Burnaby is a significant priority for our government,” Burnaby–Deer Lake MLA Anne Kang said in a provincial news release at the time. “We are thrilled that substantial advancements have been made in the Burnaby Hospital redevelopment project, bringing us closer to the realization of Phase 2.”
In February, however, the province announced it was pausing Phase 2 in a bid to manage fiscal pressures in the face of a $13-billion deficit.
And earlier this week, staff at Burnaby Hospital got an email informing them the province was cancelling the alliance contract.
The province has repeatedly said the project will move ahead despite the timelines being “adjusted,” but with Phase 2 notably absent from the province’s three-year capital plan and no new timeline announced, local health care advocates are not reassured.
“If the provincial government, including our local MLAs, are truly committed to this project, we are asking for a firm start date,” James said.
The Burnaby Hospital Foundation has already raised more than $25 million for Phase 2 alone and James said the delay and lack of clarity will damage trust in the community and among donors.
She said she is concerned delaying the much-needed project will only add to the cost.
Local MLAs mum
Freshet News requested an interview with Infrastructure Minister Bowinn Ma.
She was unavailable but sent an emailed statement saying planning work on Phase 2 will continue despite the cancellation of the contract.
“I know how important this project is to patients, families, staff and the Burnaby community,” she said.
Ma said the province is working with Fraser Health to further consider the findings of an independent review panel.
“Plans will be refreshed to ensure the project delivers the services the community needs in a financially sustainable way,” Ma said.
She repeated the province was “committed to advancing plans” on the project.
Kang, the MLA of the riding the hospital is in, has not responded to multiple requests for comment on the province’s decision to pause Phase 2.
Freshet News readers have expressed disappointment at the lack of communication from Burnaby’s MLAs regarding their government’s postponement of the project.
“I always thought the role of our MLAs was to support local issues that are important to Burnaby,” Burnaby resident Ken Pett wrote in a letter to the editor earlier this month.
“The health and well-being of Burnaby residents should be a top priority, and our MLAs should be working together to move all elements of this provincially funded project forward — a project that was promised by the NDP provincial government 10 years ago.”
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