The estimated budget for constructing a new hospital for inmates in federal facilities has surged to $1.3 billion, significantly surpassing the initial $400 million projection disclosed in 2021, as per official federal documents and inside sources.
The Treasury Board sanctioned funding for this endeavor in New Brunswick in December 2024; however, the augmented budget has not been publicly disclosed yet, given that Ottawa is engaging in a competitive bid process with construction companies.
Insiders familiar with the situation affirm that this project managed to survive the scrutiny of Ottawa’s expenditure review preceding the federal budget on November 4, contrary to the prevailing pressure to curb expenses at Correctional Service Canada.
The forthcoming 155-bed facility will provide mental and physical healthcare services in both French and English to male and female federal inmates. It will be situated in a new edifice, replacing an outdated facility within Dorchester Penitentiary, which currently operates at one-third of its capacity.
The development will be located in the Beauséjour riding, represented by Dominic LeBlanc, the federal minister overseeing Canada-U.S. trade relations.
Previously, LeBlanc acknowledged that the project’s budget would exceed the original forecast without specifying an exact figure. He likened the scale of the investment to the Confederation Bridge between New Brunswick and Prince Edward Island, which was inaugurated in 1997.
The planned budget of $1.3 billion for the new facility would represent a 30% increase compared to the $1 billion Confederation Bridge contract, as indicated by federal sources and records.
Federal sources privy to the matter were granted confidentiality by Radio-Canada due to the sensitivity of the subject.
Correctional Service Canada aims to finalize the project by 2032. During LeBlanc’s tenure as public safety minister in 2023, he was informed of the escalating budget, as revealed in a briefing note under the Access to Information Act.
Although financial specifics were redacted, the note highlighted that LeBlanc advocated for maintaining the project in its entirety despite the cost escalation.
According to federal documentation, the proposed center is designed to cater to the physical, clinical, and mental health needs of federal offenders nationwide.
The new facility, to be constructed on the premises of the Dorchester Penitentiary in southeastern New Brunswick, will replace the existing 53-bed Shepody Healing Centre.
Dr. Louis Thériault, a psychiatrist at the recovery center, has long voiced concerns about the inadequate safety conditions for inmates and staff in current facilities.
Established in 1880, the Dorchester Penitentiary has been critiqued by Dr. Thériault for its archaic infrastructure, including dungeon-like isolation cells, substandard windows, and cramped quarters, making it one of the most challenging treatment centers within the correctional service nationwide.