Second green bond issued for BC health care construction project


Almost two years after Island Health’s North Island Hospitals Project (NIHP) became the first public-private partnership project in North America and the first public infrastructure project in Canada to be partially funded through a green bond issue, a second green bond has been issued to finance the new Penticton Regional Hospital patient care tower and parkade.
First introduced by the World Bank in 2008, green bonds are similar to traditional bonds, but the proceeds are used exclusively for projects with environmental benefits. Like the North Island Hospitals Project, the Penticton Regional Hospital patient care tower and parkade will be built to a LEED (Leadership in Energy and Environmental Design) Gold standard.
The Penticton Regional Hospital project’s 32.2-year green bond was issued by EllisDon Infrastructure and raised approximately $130 million towards construction of the $312.5 million Penticton project. The 32.3-year bond issued by Tandem Health Partners in 2014 raised about $231.5 million towards the $606.2 million North Island Hospitals Project which includes a new hospital in Campbell River and a new hospital in the Comox Valley.
The NIHP has been praised for its innovation and leadership in environmental sustainability in relation to the green bond issue, winning awards including a Silver Award for Best Social Infrastructure Project North America, at the 2015 North American P3 Awards, and the Silver Award for Infrastructure Sustainability from the Canadian Council for Public-Private Partnerships in 2014.
Opening in fall 2017, the hospitals in the Comox Valley and Campbell River will use roughly half the energy of the existing hospitals per square metre. In addition, green-house gas (GHG) emissions will be 73% lower which is very close to hitting the BC Government’s 2050 green-house gas emission target.