Photo: Deborah Pfeiffer

The green bond issued to finance Penticton Regional Hospital’s new patient care tower and parkade is one of only two issuance to date for B.C. public-private partnership projects.

Finance Minister Michael de Jong announced, Thursday, this issuance builds on the success of the North Island Hospitals Project in 2014, which was the first time a green bond funded a public-private partnership in North America and the first time a green bond financed public infrastructure in Canada.

Green bonds are similar to traditional bonds, but the proceeds are used exclusively for projects with environmental benefits.

"B.C. is a recognized leader in innovative public infrastructure delivery through partnerships with the private sector," said de Jong. "Using a green bond to fund the new patient-care tower and parkade at Penticton Regional Hospital adds another dimension of social and environmental responsibility."

The 32.2 year bond was issued by EllisDon Infrastructure and raised approximately $130 million toward construction of the new tower.

Based on the EllisDon bid, the capital budget for the project is now $312.5 million.

The Okanagan-Similkameen Regional Hospital District is providing $117 million, the South Okanagan Similkameen Medical Foundation is contributing $20 million, while Interior Health is providing $14.4 million and the provincial portion is $161.1 million.

The bond issue was entirely subscribed by one Canadian life insurance company that was attracted by B.C.’s triple-A credit rating, leadership in green building and innovative approach to public-private partnerships.

EllisDon Infrastructure was selected by Interior Health as the preferred proponent for the partnership.

They began site work in May, with major construction on the tower expected to begin in August 2016.

The tower is scheduled to open for patients in spring 2019.