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Tue April 13 2021

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Carillion confirmed for Midland Met hospital

11 Aug 15 A Carillion joint venture has been named preferred bidder for the £440m Midland Metropolitan Hospital public private partnership project.

The new hospital is expected to open in 2018
The new hospital is expected to open in 2018

Carillion's JV, called The Hospital Company, has been selected by the Sandwell & West Birmingham Hospitals NHS Trust for a 30-year concession contract using the government's PF2 model.  

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. 

The new hospital will replace City and Sandwell General Hospitals. It will have approximately 670 beds and 15 operating theatres. Innovative design features include an 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.

It will be built on a 17-acre brownfield industrial site on Grove Lane in Smethwick. It is expected to be seven storeys high and provide 80,600m2 of hospital space, with capacity for approximately 81,455 inpatients and 115,045 outpatients every year.

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Financial close is expected around the end of 2015 with construction starting in early 2016. Completion is scheduled for mid-2018, with the hospital opening in late 2018.  

Carillion and Laing O’Rourke/Interserve were shortlisted for the contract in September 2014 but Laing O’Rourke/Interserve withdrew. Carillion has therefore been the sole bidder remaining for a number of months.

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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