Carillion reaches financial close on Royal Liverpool project
CONSTRUCTION group Carillion has achieved financial close on the £335m Royal Liverpool Hospital project.
The Wolverhampton-based company announced in May that it had been chosen as the preferred bidder for the scheme.
Carillion will invest around £15.5m of equity in the project, alongside Scottish Widows Investment Partnership, which is investing a similar amount, and expects to generate approximately £200m of revenue from its investment over the 30-year life of the concession contract.
Carillion will also build the new hospital for the Royal Liverpool and Broadgreen University Hospitals NHS Trust at a capital cost of some £335m and deliver non-clinical support services expected to be worth approximately £100m over the concession period.
Work on site is due to start early in 2014, with completion scheduled for 2017. The new hospital will be built next to the existing hospital, which will be demolished once services have been transferred.
The new hospital will be the largest all single-bed hospital in the country with 646 beds, including a 40-bed critical care unit, 18 operating theatres and one of the largest emergency departments in the North West. Construction is expected to contribute around £240m to the local economy, creating the equivalent of some 750 full-time jobs.
Carillion’s chief executive, Richard Howson, said: “We are delighted to have achieved financial close on this exciting new hospital, which will be our 16th PPP hospital in the UK. We look forward to working in partnership with the Royal Liverpool and Broadgreen University Hospitals NHS Trust to deliver a state-of-the-art hospital that will bring substantial benefits to the people of Liverpool.”
