Carillion named preferred bidder for Birmingham and Sandwell super-hospital

INFRASTRUCTURE and facilities management giant Carillion has been selected as preferred bidder for Birmingham’s new super-hospital.

The Midland Metropolitan Hospital Public Private Partnership project will involve more than £430m of construction and support services revenue plus an equity investment of £16m.

A Carillion joint venture, The Hospital Company, has been selected by the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new hospital as a Public Private Partnership under a 30-year concession contract using the Government’s PF2 model.   

The new state-of the-art hospital, which will have around 670 beds and 15 operating theatre suites, has been designed to meet the latest highest standards for patient care and high-quality clinical services.  

The new hospital will also have a number of innovative design features including a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors – intended to create a secure environment for both patients and staff and full separation of clinical activities and journeys from the public and non-clinical services. In addition, Carillion said the design and construction of the hospital would meet the highest standards of sustainability.

Carillion expects to invest around £16m of equity in the project, which will be built by the company at a capital cost of £297m.  Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140m 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.   

Richard Howson, Carillion chief executive, said: “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”.

As part of its commitment to the area, Carillion has pledged to provide training and apprenticeship opportunities as well maximising the use of local suppliers.