The Spanish regional Government of Castilla La Mancha has received only one bid for the concession contract to complete construction, finance, maintain and operate non-clinical services of a new hospital in the city of Toledo.

The consortium composed by OHL Construcción, Acciona Concesiones S.L., and Desarrollo de Concesiones Viarias Dos S.L (ACS group), has been the only bidder for the project. The deadline to submit proposals was 30 September 2014.

The project was previously procured via a standard construction contract but the contract was terminated with construction in an advanced stage. Construction works have been paralyzed since 2011.

The contract has an estimated investment amount of around €157 million (US$209 million). The selected private partner will be remunerated via availability payments estimated at €10.7 million, excluding VAT. Payments will start after the construction of the project has been completed.

The private partner will operate non-clinical services such as cleaning, surveillance, waste management, and phone assistance. The variable remuneration for these services is estimated to be around €40 million annually, which will be subject to reductions according to the concessionaire's performance.

The total length of the contract will be 30 years.

There is another opportunity for PPP developers in Spain as the Aragon regional government is currently structuring a concession for the new hospital project in Alcañiz. In early September we reported that Aragon had announced plans to develop the project. The concession contract will have a period of 23 years. The total contract value during the concession period is estimated at €561 million (US$736.6 million).