News Carillion Jv Named Preferred Bidder £430m Hospital Ppp

A Carillion joint venture has been selected as the preferred bidder to build a state-of-the-art new hospital in the Midlands through a £430m Public Private Partnership.

The Hospital Company has been chosen by the Sandwell & West Birmingham Hospitals NHS Trust to deliver the building, which will have 670 beds and 15 operating theatres, under a 30-year concession contract using the Government’s PF2 model.

Carillion expects to invest around £16m of equity into the project, which will be built by the company at a capital cost of £297m.

It will also deliver hard facilities management and lifecycle maintenance services, which are expected to generate around £140m in revenue over the life of the contract.

The planned hospital will include a fully enclosed Winter Garden, car parking within the main building on the ground and first floors to increase security for patients and staff, and full separation of clinical activities and journeys from the public and non-clinical services.

The Winter Garden will be developed by Grant Associates in collaboration with the scheme’s architect HKS and masterplan designer Edward Williams Architects. It will be part of a landscaping plan designed to emphasise the link between contact with nature and health and wellbeing. This will use spaces across the site to create a “green infrastructure” that will also include sensory gardens, courtyards and a large brown roof terrace for wildlife.

Elsewhere, NG Bailey, Carillion’s building services partner, will manage the design and installation of the full MEP installation worth some £80m. This will include a fully digital integrated IT platform.

Carillion chief executive Richard Howson said: “We are delighted to have been selected as the preferred bidder for this important new hospital. Carillion has delivered over 60 Public Private Partnership projects, including more than 20 healthcare projects, and this latest success reinforces our position as a leader in the PPP market.

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“We look forward to working with the Sandwell & West Birmingham Hospitals NHS Trust to deliver a state-of-the-art facility that will enable the trust to achieve its objectives for delivering significant improvements in healthcare services for the people of Sandwell and West Birmingham.”

Financial close is expected at the end of the year, with construction starting in early 2016. Completion is forecast for early 2018, with the hospital set to open later that year.

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