16 December 2013
Carillion achieves financial close on £335 million Royal Liverpool University Hospital
Public Private Partnership project
Following Carillion's announcement on 2 May 2013 that it had been selected as the preferred bidder for the £335 million Royal Liverpool University Hospital project, Carillion announces today that it has achieved financial close on this project.
Carillion will invest some £15.5 million of equity in the project, alongside Scottish Widows Investment Partnership who will invest a similar amount, and expects to generate approximately £200 million of revenue from its investment over the 30-year life of the concession contract. Carillion will also build the new hospital for the Royal Liverpool and Broadgreen University Hospitals NHS Trust at a capital cost of some £335 million and deliver non-clinical support services that are expected to be worth approximately £100 million over the concession period.
Work on site is due to start early in 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 all single-bed hospital 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 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 100 apprenticeships will be created.
Aidan Kehoe, Chief Executive of the Royal Liverpool and Broadgreen University Hospitals Trust, said: "This is a huge moment for all those who have worked so hard, for so long and we are all delighted to have achieved financial close on the new Royal. This is fantastic news for our patients, our staff and the city of Liverpool. We will have a world class hospital facility designed to provide a whole new approach to healthcare and help us to tackle some of our region's biggest health issues. The new Royal will improve the health and wealth of the city creating hundreds of construction jobs and training opportunities and paving the way for thousands of hi tech jobs on the BioCampus."
Carillion Chief Executive, Richard Howson, said: "We are delighted to have achieved financial close on this exciting new hospital, which will be our sixteenth PPP hospital in the UK. We look forward to working in partnership with the Royal Liverpool and Broadgreen University Hospitals NHS Trust to deliver a state-of-the-art hospital that will bring substantial benefits to the people of Liverpool."
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.
The Group has a sector leading capability for delivering sustainable solutions and is a member of the FTSE4Good Index. In 2013 Carillion was awarded Platinum Big Tick status in Business in the Community's Corporate Responsibility Index. It has also achieved a position on the 2013 FTSE 350 Climate Performance Leadership Index and the Climate Disclosure Leadership Index, placing it within the top ten UK companies with regard to actions to mitigate climate change.
This and other Carillion news releases can be found at www.carillionplc.com
The Royal Liverpool and Broadgreen University Hospitals NHS Trust is one of the largest and busiest hospital trusts in the North of England, with an annual budget exceeding £400 million. It delivers services across two sites and three hospitals, the Royal Liverpool University Hospital, Broadgreen Hospital and Liverpool University Dental Hospital, and employs more than 5,500 people.
Each year the Trust sees more than half a million people in its outpatient department and deals with around 150,000 emergency patients and day-case admissions. It is one of the top teaching trusts in the UK with well-established links to the University of Liverpool, Liverpool John Moores University and international institutions. In 2013 work will begin on a new £450 million state of the art Royal Liverpool University Hospital.
To find out more about the Trust, visit www.rlbuht.nhs.uk or follow us on Twitter: @RoyalLpoolHosps or Facebook: www.facebook.com/royalliverpoolhospitals
