Another hurdle cleared for new Royal hospital

Planning permission has been granted by Liverpool City Council for the £335m replacement Royal Liverpool University Hospital due to be built by Carillion in the next four years.

Austin Bell, project director at Carillion, said: "The new Royal will be one of the biggest construction projects in the city. It will provide 750 full time construction jobs, 60% of these will be for local people and 15% from priority wards in the city.

"There will be 100 apprenticeships, along with opportunities for homeless people and 16 to 24 year olds who are experiencing barriers to learning and employment. In addition, 60% of the construction spend of the project will go to the local area, supporting local businesses."

Carillion was selected in May by the Royal Liverpool & Broadgreen University Hospitals Trust to deliver the new hospital off London Road under a public private partnership arrangement.

In addition to construction, 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. Carillion also expects to invest £24m of equity in 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 consortium led by Carillion includes architects NBBJ and HKS, engineer Capita and TPS Consult, and mechanical and electrical contractor Crown House.