The Nova Scotia government will pay $18 million to buy the Central Nova Scotia Correctional Facility and the East Coast Forensic Hospital, located next to each other in the Burnside area of Dartmouth.
The province has leased both facilities, built by Alderney CFF Ltd. under a public-private partnership, since 1999.
The purchase won't take place until 2026, but the province had to give the company five years' notice under the terms of the agreement.
Justice Minister Brad Johns said the purchase makes sense for several reasons.
"It's centrally located, it's on land owned by the province and it's got the opportunity for expansion on the property," he said. "And the most important thing is that it's good value for money."
Johns said it would cost between $80 million and $100 million to replace both facilities and it would be difficult to find another suitable location.
The cost of constructing the two buildings 20 years ago was around $60 million.
Johns said the province will be responsible for maintenance once it takes over the facilities.
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