A planned multimillion-dollar HIV vaccine manufacturing facility won't be built in Canada, the Public Health Agency of Canada confirmed Friday.

The federal government was to contribute $88 million towards building the facility. It was to be a joint venture between Canada and the Bill and Melinda Gates Foundation, offering manufacturing capacity for HIV vaccines used by researchers worldwide in clinical trials.

"After weighing all of the evidence, the Government of Canada and the Gates Foundation have decided not to proceed with the pilot-scale vaccine manufacturing facility," said the notice on the agency's website.

A study commissioned by the Gates Foundation concluded there is currently enough vaccine manufacturing capacity in North America and Europe to meet research needs, the agency said.

Unofficially, Winnipeg had been the recommended site for the centre, said Terry Duguid, former CEO of the city's International Centre for Infectious Diseases.

"Our community has been cheated out of a major development that would have brought $500 million into our community over the next 20 years," said Duguid.

The new centre was also expected to employ 60 to 70 people in high-tech jobs.

Several factors killed the centre, including local politics, said Duguid, a Liberal candidate for Winnipeg South.

Duguid called the Friday afternoon announcement in the middle of the Olympics "typical" of the Conservatives.

Winnipeg spent three years and $750,000 on its bid.