Newfoundland and Labrador, Canada has awarded a $330m contract to Avalon Healthcare Partnership to construct a adult mental health and addictions hospital in St. John’s.

The contract is for design, build, finance and maintenance of the new mental health hospital.

In addition to a 240,000ft, six-storey 102-bed hospital, the project includes a parking garage that can hold 1,000 vehicles. Also, a new 60-bed hostel will be built to replace the Agnes Cowan Hostel.

Eastern Health president and CEO David Diamond said: “Today is an important day as Eastern Health and its partners move forward in building the new adult mental health and addictions facility which will provide high quality, recovery-oriented, person-centered mental health care.

“The new facility is the culmination of years of hard work and dedication and would not have been possible without very important partnerships – between people with lived experience, community partners, Eastern Health, and the Provincial Government.”

Early site work and demolition of the Agnes Cowan Hostel will be started in the coming weeks while construction of the hospital is scheduled to commence next year.

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Construction on the parking garage will also start in the coming months, with plans to complete late next year. Construction of the hospital is expected to be completed in late 2024.

The project is estimated to create more than 400 jobs during the construction period.

Minister of Health and Community Services John Haggie said: “As part of Towards Recovery, this hospital demonstrates our unwavering commitment to design a better mental health and addictions system with early intervention supports and care provided in the community and when needed, a modern, state-of-the-art facility with recovery focused inpatient programming.”

Last month, Interior Health announced the completion of renovation and multi-phase upgrades at Arrow Lakes Hospital (ALH) in Nakusp, Canada.