2 May 2013
Carillion selected as preferred bidder for £335 million Royal Liverpool Hospital Public Private Partnership project
Carillion has been selected by the Royal Liverpool and Broadgreen University Hospitals Trust to deliver the new Royal Liverpool University Hospital Public Private Partnership (PPP) project, the capital cost of which will be some £335 million.
In addition to carrying out the construction work, Carillion will deliver support services for the new hospital from which it expects to generate approximately £80 million of revenue over the life of the 30-year concession contract. Carillion also expects to invest some £24 million 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.
The new hospital will also have 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 will 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 a world class Liverpool BioCampus on the site of the current hospital, which will play a key part in transforming the area and regenerating the Knowledge Quarter of the City.
Construction of the new hospital is expected to contribute around £240 million to the local economy, creating the equivalent of some 750 full-time jobs during the construction period, with 60 per cent of these jobs going to local people. There is also a commitment to source at least 60 per cent 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: "We are delighted to have been selected to as the preferred bidder to deliver the new Royal Liverpool Hospital. This is our sixteenth PPP hospital in the UK and I believe our selection for this project reflects Carillion's outstanding reputation for delivering high-quality, value for money projects. We look forward to working in partnership with the Royal Liverpool and Broadgreen Hospital Trust to deliver a state-of-the-art hospital that will bring substantial benefits to the people of Liverpool.
"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."
For more information
John Denning, Director Group Corporate Affairs, Carillion plc + 44 (0) 1902 316426
Finsbury
James Murgatroyd or Gordon Simpson + 44 (0) 207 2513801
Notes to Editors
Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2012 of some £4.4 billion, employs around 40,000 people and operates across the UK, in the Middle East and Canada.
The Group has four business segments:
Support services - this includes facilities management, facilities services, energy services, utility services, road
maintenance, rail services and consultancy services.
Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.
Middle East construction services - this includes building and civil engineering activities in the Middle East.
Construction services(excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.
This and other Carillion news releases can be found at www.carillionplc.com
