A new hospital for federal inmates is now projected to cost $1.3 billion, which is more than three times the initial estimate of $400 million disclosed in 2021, as per federal documents and informed sources. The Treasury Board approved funding for the project in New Brunswick in December 2024, but the increased budget has not been made public due to ongoing bidding negotiations with construction firms in Ottawa.
Despite pressures to cut spending at Correctional Service Canada, the project for a 155-bed facility providing mental and physical health care in both French and English to male and female federal inmates has survived Ottawa’s expenditure review before the Nov. 4 federal budget. The new center, set to replace an outdated structure within Dorchester Penitentiary, will be situated in the Beauséjour riding, represented by Dominic LeBlanc, the federal minister responsible for Canada-U.S. trade.
LeBlanc previously hinted that the budget for the new facility would exceed the initial projections, likening its scale to the Confederation Bridge between New Brunswick and Prince Edward Island. The $1.3 billion allocated for the center is expected to surpass the $1 billion contract for the Confederation Bridge, as indicated by federal sources and documents.
The completion date for the project is targeted for 2032, with plans to address the complex clinical and mental health needs of federal offenders nationwide. Despite an increase in costs, LeBlanc, during his tenure as minister of public safety in 2023, advocated for maintaining the project’s scope as per disclosed briefing notes under the Access to Information Act.
The new center, to be constructed on the Dorchester Penitentiary grounds, will replace the 53-bed Shepody Healing Centre and cater to the deficiencies highlighted by Dr. Louis Thériault, a psychiatrist at the existing recovery center within the penitentiary. Dr. Thériault has long raised concerns about the inadequate and unsafe conditions for both inmates and staff, emphasizing the urgent need for improved facilities at the historic Dorchester Penitentiary, which dates back to 1880.