Province commits to funding new hospital

Alberta's government is going to follow through on a promise to payfor a new hospital in south Calgary, though the estimated cost has risensignificantly.

Last month, the Calgary Health Region revealed it would cost $900 million to build the hospital, a jump from the $550 million estimated two years ago when the province committed to fund the project to meet growing patient demands in Calgary.

The jump in costsprompted concerns the size of the hospital would be scaled back.

The city'sMLAs discussed the project with Premier Ed Stelmach Friday morning in Calgary.

After the meeting, Calgary-Shaw MLA Cindy Ady told reporters the premier has committed to pay the entire cost and won't be looking into alternative financing arrangements.

"I think what's important to remember here, though, is that we have committed to build the hospital," she said. "It will be a taxpayer-paid hospital."

Liberal Leader Kevin Taftsaid the commitment is long overdue andthe hospital could have been open by now if thegovernment was serious about keeping up with Calgary's infrastructure needs.

Construction on the new hospital, near 196 Avenue and Deerfoot Trail in the southeast, is to start later this year. It is supposed to be open in 2010.