A new hospital project for federal inmates is now expected to cost $1.3 billion, which is more than three times the original estimate of $400 million disclosed in 2021, according to federal documents and insider sources.
The Treasury Board greenlit funding for the initiative in New Brunswick in December 2024. However, the exact higher amount has not been publicly revealed as the government is currently in negotiations with construction companies.
Insiders familiar with the situation reveal that the project successfully passed through Ottawa’s spending review prior to the federal budget release on November 4, despite facing pressure to cut costs within Correctional Service Canada.
The upcoming 155-bed facility will provide mental and physical healthcare in both French and English to male and female inmates in the federal corrections system. It will be housed in a brand-new building, replacing an outdated facility at Dorchester Penitentiary with only a third of the capacity.
Situated in the Beauséjour riding, the project falls under the representation of Dominic LeBlanc, the federal minister overseeing Canada-U.S. trade.
LeBlanc previously acknowledged that the project’s budget would surpass initial projections but refrained from specifying an exact figure. He likened the scale of the endeavor to that of the Confederation Bridge connecting New Brunswick and Prince Edward Island, which was inaugurated in 1997.
Federal sources and documents suggest that the $1.3 billion budget for the new facility exceeds the $1 billion contract for the Confederation Bridge by 30 percent. Confidentiality was granted to sources by Radio-Canada due to the sensitivity of the information.
Correctional Service Canada aims to finalize the project by 2032. Notably, during his tenure as public safety minister in 2023, LeBlanc was briefed on the escalating costs of the project but advocated for maintaining the full scope of the facility.
The proposed facility is designed to cater to the diverse healthcare needs of federal offenders from all regions of Canada, as outlined in federal records.
The new center will be constructed on the premises of Dorchester Penitentiary in southeastern New Brunswick, replacing the existing 53-bed Shepody Healing Centre. Dr. Louis Thériault, a psychiatrist at the penitentiary’s recovery center, has long voiced concerns about the inadequate and unsafe conditions for inmates and staff within the current facilities.
Originally established in 1880, Dorchester Penitentiary’s outdated infrastructure has been a subject of criticism, with Dr. Thériault highlighting issues such as dungeon-like isolation cells, substandard windows, and cramped spaces compared to other correctional treatment centers nationwide.
