Monday, July 21, 2025
The final negotiations between the Government of Newfoundland and Labrador and New Avalon Corrections Partners (NACP) have culminated in a final project agreement, including the financial close for the construction of a new adult corrections facility. The construction of new adults corrections facility will modernize corrections and improve public safety in Newfoundland and Labrador.
Financial close for a project is a significant milestone when all the necessary financial arrangements have been finalized, all financial agreements have been secured for the construction phase and conditions have been met by the proponent. For this project, the final agreement states that the new facility will be constructed at a cost of $692.8 million.
“Our government has worked tirelessly to bring the new adult corrections facility to fruition, and today marks the final project agreement and financial close for this significant infrastructure project. Work has been ongoing at this site since we broke ground last month, and I am pleased that the final agreement milestone has been reached. All of this hard work will culminate in a modern facility that meets the needs of inmates and staff in the corrections system.” said Elvis Loveless, Minister of Transportation and Infrastructure.
The new 395-bed facility will enhance and expand the scope of correctional services currently provided by Her Majesty’s Penitentiary and the St. John’s lockup; include services for female residents as well as a Health Services Unit and expanded Resident Program and Recreation Services; and will include modern training and wellness space for support staff and correctional officers.
“Our government made a commitment to build a new correctional facility – one that would focus on treatment and rehabilitation, as well as inspire confidence in safety for inmates and staff. This final project agreement is a testament to this commitment, to support incarcerated individuals, and to transform adult corrections in Newfoundland and Labrador,” said Dr. John Haggie, Minister of Justice and Public Safety and Attorney General.
The most significant difference between the original proposal submission and the current facility under construction is the consolidated design layout versus the semi-campus style facility layout of the original proposal. The consolidated design layout provides a good response to the site conditions on East White Hills Road.
Setting the facility into the hillside will take advantage of the natural slope for the ground and second floor levels of the building design, minimizing the amount of excavation required and maintaining much of the natural landscape.
The anticipated timeline is 50 months of construction, with anticipated completion in fall 2029.
In June, ground was broken on East White Hills Road at the site of the new adult corrections facility, as the result of an Early Works Agreement that allowed NACP to begin site preparation while the full, comprehensive project agreement was being finalized.
“Plenary Americas and PCL Investments are pleased to partner with PCL-Marco and other members of the New Avalon Corrections Partners team to deliver this important infrastructure investment for the Province of Newfoundland and Labrador. Reaching financial close marks a significant milestone and reflects the strong collaboration and commitment of all parties involved. Together, we are excited to deliver a modern correctional facility that will meet the evolving needs of the justice system for years to come,” said Hafeez Habib, New Avalon Corrections Partners.
Featured image: (NL Government)
