Carillion wins £335m Liverpool hospital rebuild

Simon Donohue

A consortium led by Carillion has been selected by Royal Liverpool and Broadgreen University Hospitals Trust to deliver the new £335m Royal Liverpool University Hospital Public Private Partnership.

In addition to carrying out construction work, Carillion will deliver support services for the new hospital from which it expects to generate approximately £80m of revenue over the life of the 30-year concession contract.

Carillion expects to invest £24m of equity in the project.

The consortium led by Carillion includes architect HKS and NBBJ, engineer Capita and TPS Consult, and mechanical and electrical contractor Crown House.

The consortium beat off competition from the Horizon consortium comprising Interserve, John Laing and architect Sheppard Robson.

Work on site is due to start 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.

It 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.

It will have an underground car park for patients and visitors, and buses will come onto the site, providing better and easier access to the hospital.

There will be a dedicated cycle centre and ten electric car charging points.

Construction of the new hospital is expected to contribute around £240m to the local economy, creating the equivalent of some 750 full-time jobs during the construction period, with 60% of these jobs going to local people.

The total cost of the hospital project is £429m, which includes £335m for the new building with the remainder used for demolition of the old hospital and landscaping work.

Around £211m of the cost of the site will be met through the Private Finance Initiative, with a significant amount of that money provided by the European Investment Bank.

The Department of Health and the trust will spend £124m on the project.

Carillion chief executive Richard Howson said: "This is our sixteenth PPP hospital in the UK and I believe our selection for this project reflects Carillion's outstanding reputation for delivering high-quality, value for money projects."

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Surely not PFI is that a good idea?

By Russell Bolt -ON

Overall, the trust said the annual payment made to their private sector partner will be less than six per cent of its income – which it said is one of the lowest in the NHS.

By peter

This is only part of the development,when completed, the existing hospital will be demolished and a Bio campus will be built.The whole area is said to be twice the size of Liverpool One.

By peter

were is the full time jobs on the re build and were is the 60 % local as in merseyside employment on site

By mark roberts