Two bidders quit £300m Teesside hospital race

Aaron Morby 12 years ago
Share

Brookfield Multiplex is now the sole contender to build a new £300m hospital in Teesside after two other shortlisted firms pulled out.

Last month it emerged Spanish firm Iridium Concesiones de Infraestructuras had dropped out and now Laing O’Rourke has pulled out of the running.

North Tees and Hartlepool NHS Foundation Trust’s confirmed that only Brookfield Multiplex has submitted an initial bid to design, construct and operate its new hospital at Wynyard Business Park.

Bosses at the trust aim to fund the superhospital from pension fund loans, the first time this route has been used in the UK.

Chief executive of North Tees and Hartlepool NHS Foundation Trust Alan Foster said: “It’s not unusual for schemes to be working with one bidder at this stage, especially in the current financial climate.

“Brookfield Multiplex is as committed as we are to providing a world class facility at an affordable price that will be a lasting legacy for future generations.

“As well as satisfying ourselves that the scheme is right for this area and affordable, we are also providing as much information as we can to our regulator, the Department of Health and the Treasury so they can be satisfied at this stage that the scheme is deliverable.”

The trust will work closely with Brookfield Multiplex in the coming months to refine the design and ensure their final bid represents value for money. The new hospital is planned to open its doors in 2017.

A funding competition will run in parallel to identify the best terms available to fund the scheme.

Trust board chairman Paul Garvin described the funding approach as similar to taking out a mortgage.

He said: “We borrow the money, we build the building, and we pay it back year on year.”

Wynyard Hospital

The project is a smaller-scale version of the original £460m plan, which was scrapped, along with 12 others nationwide, in June 2010 as part of measures by the coalition government to save £2bn.

A PFI project could have cost £660m over the 30-year life of the scheme.

The bid process is expected to take a further 14 months. After that the Trust board will decide whether to borrow the cash to begin the build.

Commercial director of Brookfield Multiplex Paul Serkis added: “After having worked with the health professionals and support staff at the trust over the past few months during the dialogue stage we now share their vision to provide world class services in a world class facility and the Brookfield Multiplex team is totally committed to building a superb hospital of which the area will be proud.”

James Wharton, Conservative MP for Stockton South, said it was a positive step the trust had received an initial bid.

But he added: “It’s a cause for concern that it appears some bidders have decided that they can’t make the figures stack up.”

Latest project news

Plans in for nearly 900 homes at Manchester Mayfield

First homes at £1.4bn regeneration site will be built over four blocks
1 month ago

Pellikaan wins £25m Wiltshire leisure centre job

Work to start next month on Trowbridge swimming pool and gym
1 month ago

Lendlease OK’d to start Birmingham’s £1.9bn Smithfield scheme

First phase of 400 build to rent homes at Manor Square approved
1 month ago

Fresh plan for £170m Newcastle resi tower and hotel

Gainford Group scales down New Bridge Street scheme to 29 storeys
1 month ago

Mace confirmed for £140m Gatwick Airport Pier 6 extension

Contractor PJ Hegarty has started enabling works in middle of busy airport
1 month ago

Graham takes on ISG £45m Coventry cultural hub job

Firm will start conversion work in the Spring on former IKEA store
1 month ago

JRL Malaysian backers plan £150m London city office refurb

Ardmore set to deliver landmark 25 Finsbury Circus building overhaul
1 month ago

500-home block to replace 19 storey Sutton office tower

Landmark project to deliver 312 Build to rent and 195 co-living homes
1 month ago

Man Utd confirm plan for £2bn ‘super-tent’ stadium

Club to press ahead with 100,000-seat 'Wembley of the North'
1 month ago

Morgan Sindall wins £61m Liverpool lab scheme

Construction to start this Autumn on latest Knowledge Quarter project
1 month ago

Glencar to build timber-framed office block

Work to start next month on 79,200 sq ft scheme in Maidenhead
1 month ago

Birmingham council submits £1bn Druids Heath plan

High rise estate to be replaced by-3,500 home eco village
2 months ago

McLaren go-ahead for 314 flats Watford scheme

Police station and magistrates court to be demolished
2 months ago

Mace to transform Imperial College Great Hall

Work to start next month on ambitious refit
2 months ago

£100m plan to regenerate former Digbeth ironworks

Hartwell unveils 260,000 sq ft office and 240 homs plan
2 months ago

Legendre UK wins £21m London homes job for Clarion

Tower Hamlets building to be replaced due to building and fire safety issues
2 months ago

£230m Southampton waterfront scheme approved

Town Quay includes trio of 25 storey towers around new marina
2 months ago

Planning green light for £10bn Northumberland data centre

Blackstone-backed project will create 1,200 construction jobs
2 months ago

Green light for 1,000-home Wolverhampton city centre regen

Phase one of ECF Smithgate scheme to start this year
2 months ago

Regal submits plan to revive stalled London resi tower

Swiss Cottage project redesigned with second staircase and 237 flats
2 months ago

Muse signs up to £3.2bn Solihull health campus district

Ambitious Arden Cross scheme next to HS2 Interchange advances
2 months ago

Watkin Jones wins over £50m student digs campus upgrade

Work to start next month on phase 714-bed south London campus
2 months ago

Costain start date for £67m Romford flyover replacement

Work to start this summer on Gallows Corner bridge rebuild
2 months ago

Work starts on tyres to jet fuel recycling plant

£100m Sunderland plant will produce around 30,000t of liquid fuel
2 months ago

Funding deal for £237m Tide Construction student tower

48-storey project will be first major student scheme on Canary Wharf
2 months ago

McLaren wins £29m south east London industrial job

Crayford urban logistics hub starts construction
2 months ago

Green light for £100m A47 road junction upgrade

Long-awaited A47/A11 Thickthorn junction will support over 40,000 homes
2 months ago

Sisk starts remediation work for 1,600-home Birkenhead scheme

Wirral council has secured £52m for Hind Street Urban Village infrastructure
2 months ago

Plans unveiled for 50-storey plus Liverpool tower

Planning submission later this year for £1bn King Edward project
2 months ago

Galliford Try wins £45m high security prison fire safety retrofit

HMP Wakefield provides upgrade challenges in secure environments
2 months ago

Contractor services