MegaProject 399: EIB financing sought for Midland Metropolitan Hospital
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The European Investment Bank (EIB), the European Union's nonprofit long-term lending institution, is considering financing the Midland Metropolitan Hospital PPP project in the UK.
The 80,000 m² new Midland Metropolitan Hospital will provide, among others, A&E, maternity, childrens' services, critical care, diagnostics and the full range of acute hospital services.
The project will be developed on a design, build, and maintenance basis. The contract is also likely to include hard facilities management services and lifecycle maintenance over the operational life of the facilities, but it will not include soft facilities management services or sterile services.
The total project investment is estimated at £350 million (US$538.5 million). The EIB is considering financing £120 million (US$184.6 million).
The preferred bidder is expected to be appointed in autumn 2015 and financial close is planned for April 2016.
In mid July 2014 the Sandwell and West Birmingham Hospitals NHS Trust launched a Pre-Qualification Questionnaire (PQQ) to assess the technical capability and capacity, financial and economic strengths of organisations expressing an interest in bidding for the project. At that time George Osborne, Chancellor of the Exchequer and Second Lord of the UK Treasury and the Member of UK Parliament, announced the approval of funding for the project through the new private finance initiative model, PF2.
Earlier in February 2014 the Sandwell and West Birmingham Hospitals NHS Trust announced via a prior information notice that it planned to launch the tender process to develop the Midland Metropolitan Hospital Project.
We have recently reported about several hospital PPP projects in UK:
- Hinchingbrooke Health Care NHS Trust accommodation
- Edinburgh hospital redevelopment PFI (Health mental facility in Morningside campus)
- Papworth hospital
- Orkney Hospital and Healthcare Facility NPD