The Plenary Justice consortium has reached financial close on the Okanagan Correctional Centre P3 project and the consortium has also signed the project agreement with the province of British Columbia in Canada.

The consortium includes Plenary Group, PCL Constructors Westcoast Inc, Honeywell Limited, DGBK Architects and Jug Island Consulting Ltd.

The owner of Project is Plenary Canadian Holdings Inc., which will provide project's equity. The total budget to carry the project to service commencement is set at US$198.2 million. This includes US$166 million for the fixed-price design-build agreement, US$13.5 million for debt servicing and financing charges, US$3.7 million for project expenses incurred during the construction phase, and US$3.6 million to fund the six month debt service reserve account  at service commencement.

According to DBRS ratings, a 32.6-year $114.5 million Series A senior notes were issued at financial close comprising 90.5% of the total capital structure (excluding the provincial funding). During construction, the Province will make monthly contribution payments not to exceed 40% of the construction costs to date at the end of each month, subject to a cumulative maximum of $72.3 million over the construction period.

The construction phase extends for 31 months starting in March 2014 followed by a 30-year service phase commencing at the Service Commencement Date targeted for September 30, 2016. Upon completion of construction, Honeywell Limited will provide facility management as well as lifecycle maintenance and utilities management services over the 30-year service phase of the project.

The project entails the design and construction of a three-storey correctional centre of approximately 29,500 square-metres on a 36-acre site near Penticton, British Columbia. The facility will consist of three pods with 12 living units containing the majority of the inmate cells and a separate central administration and services building, which will accommodate support and ancillary functions as well as a small number of special cells. The total number of cells is 465 with a maximum capacity of around 867 inmates.