Carillion wins £335m Royal Liverpool Hospital build

Aaron Morby 11 years ago

After months of delays Carillion has been named preferred bidder to build the Royal Liverpool Hospital.

The firm beat rival Horizon consortium – Interserve, John Laing and FCC – to take the major hospital job, which will be financed with a mix of private and public funding rather than mainly PFI as first planned.

The project is expected to reach ‘financial close’ next January with work on site following shortly after. It will create the equivalent of 750 full-time jobs during the four-year build.

Carillion plans to build the major hospital next to the current hospital, with the project scheduled to open in 2017.

Crown House is expected to take the significant M&E package under a contract management agreement.

The new Royal will be the largest hospital in the country and one of very few NHS hospitals to provide all single en-suite bedrooms for patients, improving privacy and dignity for patients, helping to reduce infection risks.

A key element of gaining Treasury approval has been to reduce the amount of PFI financing behind the giant healthcare scheme.

The hospital will cost £335m including the new build, landscaping and demolishing the current hospital.

Just £124m will be paid for using a Private Finance Initiative (PFI) scheme, of which half may come from the European Investment Bank.

The Department of Health will stump up £100m and the Trust a further £110m.

This means that the annual payment made by the Trust to its PFI partner is less than 6%  of its current turnover – one of the lowest in the NHS.

The Trust is also investing £94m in associated schemes including the multi storey car park, equipment and demolitions.

Carillion will deliver support services for the new hospital from which it expects to generate £80m of revenue over the life of the 30-year concession contract. The contractor will also invest some £24m of equity in the project.

The current Royal will be demolished once services have transferred to the new hospital. Other work will then take place on site, such as landscaping and building the Liverpool BioCampus.

Richard Howson, chief executive, Carillion, said: “We are proud to be working in Liverpool again and we are looking forward to working with staff, patients and the public during construction.

“The new Royal will also enable the delivery of the Liverpool BioCampus, a pivotal development for the north-west and a key part of the regeneration of the Knowledge Quarter. We are thrilled to be part of such an exciting future for the city. ”

Site next to existing hospital



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