Cambridge University Hospitals (CUH) has announced that the project for the relocation of Papworth Hospital to the Cambridge Biomedical Campus has been approved by HM Treasury.

Professor John Wallwork, chairman of Papworth Hospital, stated:

We are delighted to hear that the Chief Secretary to the Treasury, Danny Alexander MP, and Chancellor of the Exchequer, George Osborne, have today signed off the business case for the New Papworth Hospital project, following Mr Osborne's pledge of personal support for the project on Friday.

On 4 December 2013, Skanska was named preferred bidder to design, build and maintain the new Papworth Hospital at its new location, the Cambridge Biomedical Campus. OCS, a member of the consortium, will provide support services such as catering and cleaning.

The project cost is estimated at £165 million (US$270 million), and the construction is set to start in Autumn 2014 and be completed by early 2017. The project will consist of a 310-bed, purpose-built hospital and it will have a research and education institute. Bringing together two great

NHS institutions, on the site of the Cambridge Bio-medical Campus, will also create a hub of world leading medicine, research and pharmaceutical development. Backing successful research clusters such as this are a key component of the long term plan for science.

Danny Alexander, Chief Secretary to the Treasury, stated:

This ambitious package will ensure that patients across the East of England continue to benefit from access to world-class specialist treatment, will secure Papworth hospital's future location, and help further develop its world leading capabilities.