The estimated budget for constructing a new hospital for federal inmates has surged to $1.3 billion, surpassing the initial $400 million projection disclosed in 2021, as per federal records and informed sources. The allocation for this initiative in New Brunswick secured approval from the Treasury Board in December 2024, though the increased amount remains undisclosed to facilitate the ongoing bidding process with construction companies in Ottawa.
Insiders familiar with the situation reveal that the project successfully withstood Ottawa’s financial scrutiny before the federal budget on November 4, despite the push to curtail expenditures at Correctional Service Canada. Intended to accommodate 155 beds, the facility will deliver bilingual mental and physical healthcare to male and female inmates within the federal correctional system. Housed in a new structure, it will supplant an outdated facility currently located within Dorchester Penitentiary, offering one-third of the current capacity.
Situated in the Beauséjour riding, the hospital will fall under the jurisdiction of Dominic LeBlanc, the federal minister overseeing Canada-U.S. trade. LeBlanc previously acknowledged that the budget for the center would exceed initial estimates without specifying an exact figure. During a news conference in December 2024, LeBlanc hinted that the project’s cost would be akin to the Confederation Bridge connecting New Brunswick and Prince Edward Island, alluding to the scale and magnitude of the undertaking.
The projected $1.3 billion budget for the new hospital represents a 30% increase over the $1 billion contract for the Confederation Bridge, as disclosed by federal sources and documents. Confidentiality was granted by Radio-Canada to unauthorized federal sources shedding light on this development. Correctional Service Canada anticipates the completion of the hospital by 2032.
In his previous role as public safety minister in 2023, LeBlanc received notifications of the project’s escalating budget through a briefing note obtained under the Access to Information Act. Though financial details were redacted, the note revealed LeBlanc’s insistence on maintaining the project’s integrity despite rising costs. Anne Kelly, commissioner of Correctional Service Canada, affirmed that the initial plan for a 155-bed facility should proceed without any reductions in scope, as per the directives during discussions.
The proposed hospital aims to cater to the complex clinical and mental health requirements of federal offenders nationwide, as outlined in federal documents. Positioned in southeastern New Brunswick, the new facility will replace the existing 53-bed Shepody Healing Centre on the premises of Dorchester Penitentiary. Dr. Louis Thériault, a psychiatrist at the recovery center, has long advocated for improved facilities, highlighting the inadequate conditions within the current setup.
Established in 1880, Dorchester Penitentiary has been flagged for its substandard infrastructure, with Dr. Thériault emphasizing the urgent need for enhanced safety measures for both inmates and staff due to the outdated and cramped facilities that compromise the well-being of individuals under its care.