Carillion choice for Smethwick hospital

A joint venture of Wolverhampton-based Carillion has been selected as the preferred bidder for the Midland Metropolitan Hospital Public Private Partnership project of more than £430 million of construction and support services revenue plus an equity investment of £16m.

Carillion choice for Smethwick hospital

The Hospital Company has been chosen by the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new hospital at Grove Lane, Smethwick, as a public private partnership under a 30-year concession contract.

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.

It 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.

Carillion expects to invest £16m of equity in the project, which will be built by Carillion at a capital cost of £297m.

Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140m of revenue over the life of the concession contract.

Financial close is expected around the end of 2015 with construction starting early in 2016.

Completion is scheduled for mid-2018, with the hospital opening in late 2018.

Carillion will also use the project to provide training and apprenticeship opportunities as well maximising the use of local suppliers.

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 over 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.

"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."

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