business

Carillion lands £430m Midland Metropolitan Hospital contract

Black Country support services giant to lead construction of new seven-storey hospital in Smethwick which will cater for around 200,000 patients when it opens in 2018

Carillion has been named preferred bidder to build a new hospital in Smethwick

Black Country infrastructure and support services group Carillion will lead the development of a new hospital in a £430 million project.

The Wolverhampton-based plc has been named preferred bidder on the Midland Metropolitan Hospital Public Private Partnership (PPP) project via its joint venture called The Hospital Company.

The company, which led development of the Library of Birmingham, won the selection from Sandwell and West Birmingham Hospitals NHS Trust to deliver the hospital as a PPP under a 30-year concession.

Carillion said the scheme was worth more than £430 million in construction and support services revenue and it is making an equity investment of £16 million.

The new seven-storey hospital will be located on a 16-acre brownfield site in Grove Lane, Smethwick, and is expected to provide capacity for around 81,500 inpatients and 115,000 outpatients every year.

It will have about 670 beds, 15 operating theatres a fully enclosed winter garden and car parking within the hospital building on the ground and first floors to create a secure environment for both patients and staff.

There will also be a full separation of clinical activities and journeys from the public and non-clinical services.

Construction is due to start early next year with the hospital opening in late 2018.

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

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 PPP 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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