NH to cancel some contracts related to Peace Villa expansion

FORT ST. JOHN, B.C. — Some contracts related to the Peace Villa expansion will be cancelled after the project was put on hold. 

In a written statement to Energeticcity.ca, Northern Health said: “Northern Health will be cancelling some contracts related to the planned expansion of the Peace Villa long-term care home in Fort St. John.”  

The health authority said it does not anticipate any additional costs from cancelling the contracts.

Finance Minister Brenda Bailey tabled her first budget for 2026 on February 17th, which included delays to seven long-term care projects across the province, one of which is in Fort St. John.

The Ministry of Finance, in a previous statement to Energeticcity.ca on February 18th, said it is conducting a review of the long-term health care infrastructure program. 

It said: “For several projects, we are experiencing significant and unsustainable costs.” 

“In some cases, the costs have increased to as high as $1.8 million per bed.”  

The ministry said it has, on average, seen a 35 per cent increase across 12 projects over three years. 

The City of Fort St. John penned an open letter to address the postponement of the city’s new long-term care home on March 11th. 

The city’s mayor, Lilia Hansen, who wrote on behalf of the city council and residents, expressed concerns about the postponement and has raised concerns among seniors, families, and caregivers who rely on the availability of appropriate care close to home. 

On April 27th, Bowinn Ma, the Minister of Infrastructure, acknowledged the city’s concern about the delay of the Peace Villa expansion project and explained the delay was a result of “fiscal pressures.”

Ma said: “Construction costs continue to rise, pushing the price of building long-term care homes beyond sustainable levels.” 

She also said the province “remains committed” to building long-term care homes for communities such as Fort St. John. 

Jordan Kealy, MLA for Peace River North, said that he was very disappointed when the budget was released.

“I’ve worked with local governments as well as the province, to try and find ways to advocate to make the project go through,” he noted. “Now the government’s announced they’re going to be on hold, which pretty much means they’re going to be cancelled.” 

Kealy believes that the main issue is that the government is “broke.” 

He said: “They don’t know how to run a government properly, they’ve got a $13.3 billion deficit and we’ve got a record high debt for this province.” 

He said that this is an example of how the government is prioritizing rural regions last. 

“I really am disgusted…seniors are being put in this scenario. They don’t deserve to have paid taxes their whole lives and then to have nowhere to go when they need it,” he added. 

Northern Health said it remains committed, along with the province, to this project. 

“Work continues to drive down costs and deliver more long-term care for people in Fort St. John, and surrounding areas,” it added.