Megaproject 268: UK approves funding for hospital PF2 project

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Megaproject 268: UK approves funding for hospital PF2 project This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

George Osborne, Chancellor of the Exchequer and Second Lord of the UK Treasury and the Member of UK Parliament, yesterday announced the approval of funding for developing the Midland Metropolitan Hospital Project through the new private finance initiative model, PF2.

The total investment is estimated at £353 million (US$604 million). The project will be developed on a design, build, and maintenance basis.

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 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.

Construction of the hospital is expected to start in 2016. Plans will be finalised over the coming months, with all funding subject to final approvals as usual.

George Osborne stated:

This ambitious package will ensure that patients across the West Midlands continue to benefit from access to world-class acute treatment and cutting edge facilities. It is because of the difficult decisions we have taken as a government that we have been able to protect health care spending, and announce new facilities like the Midland Metropolitan Hospital.

Richard Samuda, Chairman of Sandwell and West Birmingham Hospitals commented:

This is a vote of confidence in 7,500 staff at the Trust. The Chancellor's announcement at Rowley Regis Hospital reinforces our strategy of local care for long term conditions and a single specialist acute centre at the Midland Met.

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.

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