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Carillion wins Midland Metropolitan Hospital contract

Carillion wins Midland Metropolitan Hospital contract

A Carillion joint venture known as the Hospital Company has been chosen as the preferred bidder by Sandwell and West Birmingham Hospitals NHS Trust for a £430 million Midland Metropolitan Hospital contract after the Laing O’Rourke Interserve consortium decided to withdraw its tender. Balfour Beatty had also been involved in the process, but dropped out before the shortlisting process could begin.It will be the first UK hospital to be built as a Public Private Partnership (PPP) model using the government’s PF2 scheme and will operate under a 30-year concession.Once completed, the hospital will have a capacity of 670 beds, along with 15 operating theatres. There will also be a winter garden and indoor car parking facilities. The innovative design is aimed at maintaining a separation between clinical activities and public areas to create the most pleasant environment possible.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”.Carillion plans to invest £16 million of equity capital into the project, which has a projected build cost of £297 million. The company should receive a profit of £140 million over the life of the concession contract, under which they will be responsible for hard facilities provision and life cycle management. It will also create a number of apprenticeships and training opportunities as part of the project, as well as trying to use local suppliers wherever possible.Construction is expected to begin in the first half of 2016, with a completion date of mid-2018. 

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