File photo of Regional Health Centre groundbreaking ceremony.
File photo of Regional Health Centre groundbreaking ceremony.It appears that the bottom line for the new North Bay Regional Health Centre project has changed once again with new reports by a local media outlet pegging the cost at just over $1 billion. The new price tag is nearly double what was announced during a groundbreaking ceremony in March.
When officials first announced that North Bay was in line for a new hospital back in 2005 the estimated cost was in the area of $250 million, but when the province changed how they would finance new hospitals the amount doubled to $500 million. However, that $500 million price tag includes 30 years worth of maintenance plus the cost of construction, equipment for the project, and financing.
MPP Monique Smith says the figure talked about in March represented the net present value.
“I think anyone that has bought a house knows that their house cost $200,000 or a $150,000 today, but over time as they pay for their mortgage, they know that it's a larger number,” she states.
“So that’s the number that is being discussed in the Nugget today, and I think this community is very happy to see the project moving forward to finally see shovels in the ground and movement on the site and looking forward to our hospital in 39 months.”
Smith agrees that the final price tag is not cast in cement and will fluctuate with interest on financing side but questions the figures published by the local media outlet.
“I think the numbers that where in Nugget, some of them are accurate that have been provided by the Ministry of Health, and some of them are … I don't know who is making them up,” she told BayToday.
“But certainly the interest charges are not what they've set out to be in the article, It's fairly simplistic math. I think people understand that there are costs over time, but the community is just really happy to see this project moving forward.”
Smith expects to release the details next week around interest rates and the new figures, but states that the local share will not be impacted.
Hospital price tag revealed
