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Tue June 22 2021

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Carillion scoops £335m Liverpool hospital PPP

2 May 13 Carillion has been selected as preferred bidder for the £335m Royal Liverpool Hospital public-private partnership project.

It was appointed by Royal Liverpool & Broadgreen University Hospitals Trust to deliver the scheme.

In addition to carrying out the construction work, Carillion will provide 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 also expects to invest some £24m of equity in the project.

Work on site is due to start shortly after the project reaches financial close, which is expected 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. The new hospital 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.

There will also be 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. The hospital is intended to be one of the greenest in the country, with renewable energy systems, low carbon technology, water meters and leak detection systems. The project will also pave the way for the Liverpool BioCampus to be developed on the site of the current hospital.

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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. There is also a commitment to source at least 60% of materials locally. Fifteen per cent of the workforce will come from priority council wards in the city and 75 to 100 apprenticeships will be created.

Aidan Kehoe, chief executive, said: "We are absolutely thrilled to unveil the design for the new Royal today. The Royal is at the very heart of our City and the creation of a world-class, cutting-edge hospital will transform healthcare in Liverpool.

"It means that we can create the Liverpool BioCampus, which will spearhead the transformation of the Knowledge Quarter into a bustling and cosmopolitan hub. It is a unique opportunity to put the city on the world-stage, along with cities like Boston and Singapore. This is incredibly exciting for the people of the city."

Carillion chief executive Richard Howson said: "This takes the total value of new orders and probable orders for Carillion in 2013 to over £2 billion and demonstrates the benefits of our strategy of focusing on national construction projects."

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