A new hospital for federal inmates is now projected to cost $1.3 billion, significantly higher than the initial estimate of $400 million disclosed in 2021. The funding for this project in New Brunswick was approved by the Treasury Board in December 2024, although the increased budget remains undisclosed as Ottawa is currently in the bidding process with construction companies.
Sources familiar with the situation have revealed that the project passed Ottawa’s spending review before the federal budget announcement on November 4, despite pressures to cut expenses at Correctional Service Canada. The upcoming 155-bed facility will provide mental and physical healthcare services in both French and English to male and female inmates in the federal correctional system. It will be housed in a new structure, replacing the outdated facility within Dorchester Penitentiary that has only a third of the capacity.
Situated in the Beauséjour riding, represented by Dominic LeBlanc, the federal minister responsible for Canada-U.S. trade, the new center has been a subject of budget discussions. Last year, LeBlanc hinted that the project’s budget would exceed the initial estimates, drawing comparisons to the Confederation Bridge connecting New Brunswick and Prince Edward Island.
The $1.3 billion allocated for the new facility represents a 30% increase over the Confederation Bridge contract. Federal sources and documents confirm this information, with Radio-Canada granting confidentiality to individuals privy to the details. Correctional Service Canada aims to complete the project by 2032, as per their plans.
During his tenure as the Minister of Public Safety in 2023, LeBlanc was informed of the escalating budget for the project through a released briefing note under the Access to Information Act. Despite the cost increase, LeBlanc advocated for the project’s full scope to be maintained. The new center is designed to cater to the complex clinical and mental health needs of federal offenders from various regions in Canada.
Scheduled to be built on the Dorchester Penitentiary grounds in southeastern New Brunswick, the forthcoming center will replace the existing Shepody Healing Centre. Dr. Louis Thériault, a psychiatrist at the current recovery center, has been vocal about the inadequate and unsafe conditions for both inmates and staff at the current facilities, dating back to the opening of Dorchester Penitentiary in 1880.