Carillion preferred bidder for Midland Metropolitan Hospital PPP 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.
Carillion has been selected as the preferred bidder for new Midland Metropolitan Hospital public private partnership (PPP) project in the UK.
The 80,000 m² new hospital will have around 670 beds and 15 operating theatre suites. It will also have a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors and full separation of clinical activities and journeys from the public and non-clinical services. The 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 under a 30-year concession contract.
Carillion expects to invest some £16 million of equity in the project, which will be built by Carillion at a capital cost of £297 million (US$462.7 million).
Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140 million of revenue over the life of the concession contract.
Financial close is expected around the end of 2015 with construction starting early in 2016. Completion is scheduled for mid-2018, with the hospital opening in late 2018.
Commenting, Carillion Chief Executive, Richard Howson, stated:
"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. We look forward to working with the Sandwell and 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."
We have recently reported on several PPP projects in the UK:
