Carillion is preferred bidder for Midland Metropolitan Hospital PF2 project


Carillion joint venture to deliver £353m facility for Sandwell and West Birmingham Hospitals NHS Trust

Just four months after it was revealed that developers Laing O’Rourke/Interserve had pulled out of the running for the £353m contract to build the new Midland Metropolitan Hospital, rival bidder, Carillion, has been named frontrunner for the scheme.

The Carillion joint venture – operating as The Hospital Company - has been selected as the preferred bidder by the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new facility under a 30-year concession contract using the UK 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 best international and national standards to make it truly patient focussed and to support the efficient delivery of 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 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, the design and construction of the hospital will meet the highest standards of sustainability.

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

Financial close is expected around the end of this year, with construction starting early in 2016. Completion is scheduled for mid 2018, with the hospital opening later that year.

Carillion chief executive, Richard Howson, said: "We are delighted to have been selected as the preferred bidder for this important new hospital. Carillion has delivered more than 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.

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“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."