Government cancels several projects announced by Liberal Government

Minister of Transportation and Infrastructure Barry Petten announced today that the government will move forward with projects that reflect what it calls smarter spending.

Planning will begin to redevelop St. Clare’s Hospital, with an emphasis on affordability and extending the life of existing infrastructure. The proposed Downtown Health Centre will be refocused to offer services not currently available at St. Clare’s to improve access to care. The Janeway Hospital Redevelopment will also be re-scoped in collaboration with NL Health Services to better meet patient needs.

Government is proceeding with plans for a new urgent care centre in Conception Bay South.

Changes to infrastructure procurement were also announced, aimed at ensuring provincial residents benefit directly from future investments. Measures include prioritizing the hiring of local skilled tradespeople, awarding contracts to local companies, and increasing opportunities for women and other underrepresented groups in the construction workforce.

Existing projects with contracts already awarded will continue, including new schools in Paradise, Portugal Cove–St. Philip’s, Kenmount Terrace, and Cartwright, as well as the new adult corrections facility. Municipal infrastructure projects and the annual Roads Plan will also move ahead, supporting employment and economic activity across the province, particularly in rural areas.

The announcement builds on earlier procurement changes, including the cancellation of requests for proposals for a public-private partnership model for twinning two sections of the Trans-Canada Highway between Bishop’s Falls and Grand Falls-Windsor, and west of Whitbourne. Instead, the work will be tendered through separate contracts awarded progressively, similar to projects under the provincial Roads Plan, with maintenance handled by public service employees. Government says this approach will create more opportunities for local contractors.

Petten also confirmed that several projects will not proceed due to fiscal constraints and a lack of alignment with immediate public priorities. These include the proposed Kenmount Crossing Acute Health Care Campus, the Sports and Wellness Dome in St. John’s, and a mid-sized theatre.

The minister added that the province will continue working with the federal government to secure its share of infrastructure funding and to push for timely approvals on cost-shared projects.

The province’s fall fiscal update projected a deficit of $948 million. Despite these challenges, government says it remains focused on improving health care, supporting affordability, and building safer communities.