The cost projection for constructing a new hospital for federal inmates has surged to $1.3 billion, surpassing the initial estimate of $400 million disclosed in 2021, as indicated by federal records and insiders. Treasury Board sanctioned the funding for the venture in New Brunswick in December 2024, but the increased amount has not been disclosed publicly due to ongoing negotiations with construction companies in Ottawa.
Insiders familiar with the situation reveal that the project withstood a financial scrutiny by Ottawa before the federal budget on November 4, despite the push to curtail spending at Correctional Service Canada. The 155-bed facility, slated to provide mental and physical healthcare services in both French and English to male and female federal inmates, will be housed in a new structure, replacing an outdated unit within Dorchester Penitentiary that has one-third of the capacity.
Situated in the Beauséjour riding, represented by Dominic LeBlanc, the federal minister overseeing Canada-U.S. trade, the facility’s budget was confirmed to exceed the initial plan by LeBlanc last year, albeit without specifying an exact figure. LeBlanc likened the project’s scale to that of the Confederation Bridge connecting New Brunswick and Prince Edward Island, inaugurated in 1997, during his tenure as finance minister.
Confidential federal sources and documents report that the $1.3 billion allocated for the new center represents a 30% increase over the $1 billion Confederation Bridge contract. Radio-Canada has granted anonymity to sources privy to the matter due to lack of authorization to discuss it publicly. Correctional Service Canada aims to finalize the project by 2032.
During his term as public safety minister in 2023, LeBlanc was apprised of the escalating project costs, as revealed in an Access to Information Act document. Although financial details are redacted, the note indicates that LeBlanc advocated for maintaining the project scope despite cost escalations. The proposed center, according to federal documents, is designed to cater to the complex clinical and mental health requirements of federal offenders nationwide.
Planned to be erected on the Dorchester Penitentiary grounds in southeastern New Brunswick, the new center will supplant the 53-bed Shepody Healing Center. Dr. Louis Thériault, a psychiatrist at the recovery facility, has long emphasized the inadequate safety conditions for inmates and staff in the current facilities, describing them as substandard compared to other correctional treatment centers nationwide.
Established in 1880, the Dorchester Penitentiary has been criticized for its dungeon-like isolation cells, deficient windows, and cramped spaces, prompting concerns for the well-being of individuals under its care.