Financial close reached for Adult Corrections Facility Replacement Project

The final negotiations between the Government of Newfoundland and Labrador and New Avalon Corrections Partners (NACP) have culminated in a final project agreement, including reaching financial close on the Adult Corrections Facility Replacement Project in St. John’s.

The project is set to replace Her Majesty’s Penitentiary, one of Canada’s oldest operating prisons. Originally constructed in 1859, the current site acts as the primary facility for housing medium and maximum-security male prisoners in the region.

At 295,220 square feet, the new two-storey facility will be built at a cost of $692.8 million and will enhance and expand the scope of correctional services. Features include:

• 395 beds,
• Services for female residents,
• A Health Services Unit and expanded Resident Program and Recreation Services, and
• Modern training and wellness space for support staff and correctional officers.

The anticipated timeline is 50 months of construction, with anticipated completion in fall 2029. 

In June, ground was broken on the site of the Adult Corrections Facility Replacement Project at East White Hills Road as the result of an Early Works Agreement valued at approximately $1.5 million that allowed NACP to begin site preparation while the full, comprehensive project agreement was being finalized.

Members of the NACP consortium include:

• Developer and Equity Provider: Plenary Americas and PCL Investments Inc.
• Design-Builder: PCL/Marco, A Joint Venture (PCL Constructors Canada Inc. and Marco Group)
• Service Provider: Johnson Controls Inc.
• Prime Architect: Parkin

Quotes

“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.”

• Honourable Elvis Loveless, Minister of Transportation and Infrastructure

“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.”

• Honourable Dr. John Haggie, Minister of Justice and Public Safety and Attorney General

“This agreement marks a significant step forward for our justice system and our community. Reaching this financial agreement to build a new penitentiary reflects our commitment to modernizing correctional facilities, ensuring safety, and providing rehabilitative support. This is an investment in infrastructure and public safety.”

• Honourable Bernard Davis, Minister of Education and Early Childhood Development, MHA for Virginia Waters – Pleasantville

“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 proud to deliver a modern correctional facility that will meet the evolving needs of the justice system for years to come.”

• Hafeez Habib, Senior Vice President – Asset Delivery, Plenary Americas

“On behalf of PCL Investments and PCL/Marco, we are proud to join forces with Plenary Americas, Parkin and Johnson Controls as part of the New Avalon Corrections Partners team to bring the Government of Newfoundland and Labrador’s transformative project to life. Along with our expert partners, we are excited to help deliver a modern, purpose-driven facility that reflects our shared commitment to safety, and community well-being. We look forward to building a space that supports the vision and values of our partners and sets a new benchmark for correctional infrastructure.”

• Myke Badry, Vice President and District Manager, PCL Constructors Canada Inc.

About Plenary Americas

Plenary Americas is a leading specialized developer of long-term partnership projects across Canada, the United States, and the Caribbean, with a portfolio of 60 projects in the health, transportation, defence, justice, education, energy, and government accommodation sectors. With an uncompromising focus on lifecycle performance, Plenary engages in the entire spectrum of project evolution, including financing, planning, design, construction, complementary commercial development, and asset management operations. This comprehensive approach underscores our commitment to excellence at every phase of a project. For more information, visit www.plenaryamericas.com.

About PCL Construction

PCL is a group of independent construction companies that operates throughout Canada, the United States, the Caribbean and Australia. As one of the largest contracting organizations in North America, PCL completes more than $11 billion CAD in work annually, building projects that shape communities. The company’s 100% employee ownership model fuels a culture of commitment for clients in the buildings, civil infrastructure, heavy industrial and solar markets. With a strategic presence in more than 30 major centers, PCL’s leadership teams consistently drive innovation and set new benchmarks for excellence, bringing unparalleled skill to every project. Watch us build at PCL.com.

About Marco Group Limited

Marco Group is one of Atlantic Canada’s most respected general contractors, delivering high-quality construction services for over 40 years. With offices in St. John’s, and Halifax, Marco is known for building strong client relationships and even stronger communities.

Media contacts

Melony O’Neill
Transportation and Infrastructure
709-729-3015; 709-689-0928
melonyoneill@gov.nl.ca

Debbie Marnell
Justice and Public Safety
709-729-5188; 709-699-9048
debbiemarnell@gov.nl.ca

Kara Connors
Constituency Assistant to the Honourable Bernard Davis
709-729-4410
KaraConnors@gov.nl.ca

Liisa Morley
Communications Manager, PCL
647-956-7637
lmorley@pcl.com