UK government to give contracting authority option to cancel Royal Liverpool hospital PPP

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The UK Government's Department of Health and Social Care has announced that the National Health Service (NHS) Trust that contracted Carillion to construct the Royal Liverpool Hospital will be able to declare the project in default from 30 September.

Carillion was awarded a 30-year concession for the new 646-bed hospital in Liverpool, in the north-west of England, in May 2013. Estimated to cost GBP335 million (US$440 million), the hospital was originally scheduled to be completed and handed over to Royal Liverpool and Broadgreen University Hospitals Trust in March 2017. The completion date was pushed back three times before Carillion went into compulsory liquidation earlier this year.

30 September 2018 was the longstop date agreed in Carillion's contract. Whether the Trust intends to terminate the contract is not yet known, with the UK government having assured its support for the project however the authority decides to proceed.

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