Carillion wins £335m contract to build Liverpool ‘super’ hospital

WOLVERHAMPTON construction and support services giant Carillion has been selected as preferred bidder for the £335m Royal Liverpool Hospital public private partnership project.

Carillion has been selected by the Royal Liverpool and Broadgreen University Hospitals Trust to deliver the project.

Work on site is due to start shortly after the project reaches financial close, which is expected in January 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 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.

The hospital will be one of the ‘greenest’ in the country, with renewable energy systems, low carbon technology, water meters and leak detection systems.

The project will also pave the way for a world class Liverpool BioCampus on the site of the current hospital, which will play a key part in transforming the area and regenerating the Knowledge Quarter of the city.

Construction of the new hospital is expected to contribute around £240m to the local economy, creating the equivalent of some 750 full-time jobs during the construction period, with 60% of these jobs going to local people.

There is also a commitment to source at least 60% of materials locally. Some 15% of the workforce will come from priority council wards in the city and 75 to 100 apprenticeships will be created.

Hospital chief executive Aidan Kehoe said: “We are absolutely thrilled to unveil the design for the new Royal today. The Royal is at the very heart of our city and the creation of a world-class, cutting-edge hospital will transform healthcare in Liverpool.

“It means that we can create the Liverpool BioCampus, which will spearhead the transformation of the Knowledge Quarter into a bustling and cosmopolitan hub. It is a unique opportunity to put the city on the world-stage, along with cities like Boston and Singapore. This is incredibly exciting for the people of the city.”

Carillion chief executive Richard Howson said: “This is our 16th PPP hospital in the UK and I believe our selection for this project reflects Carillion’s outstanding reputation for delivering high-quality, value for money projects.

“We look forward to working in partnership with the Royal Liverpool and Broadgreen Hospital Trust to deliver a state-of-the-art hospital that will bring substantial benefits to the people of Liverpool.”

In addition to carrying out the construction work, Carillion will deliver support services for the new hospital from which it expects to generate approximately £80m of revenue over the life of the 30-year concession contract. Carillion also expects to invest some £24m of equity in the project.

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