Financial close for Edinburgh hospital PPP
The consortium Integrated Health Solutions Lothian has achieved financial close for the new Royal Hospital for Sick Children and Department of Clinical Neurosciences PPP project in Edinburgh.
The project was awarded to Integrated Health Solutions Lothian consortium, on 6 March 2014. The Integrated Health Solutions Lothian consortium includes Brookfield Multiplex as the main contractor, Bouygues as facilities management provider and HLMAD as architects, with financial partner Macquarie Capital Group.
According to sources, Macquarie Capital and SMBC have closed the £185 million debt financing for the project.
The new building will see services from the Royal Hospital for Sick Children, Department of Clinical Neurosciences and Child and Adolescent Mental Health Service brought together in a modern and high-quality setting at Little France. The new facility will have 233 beds and 10 theatres, specifically it will have 154 beds in the Royal Hospital for Sick Children, 67 beds in the Department of Clinical Neurosciences and 12 beds in the Child and Adolescent Mental Health Service. Eleven beds will also be added to the critical care department within the Royal Infirmary of Edinburgh.
The project will be developed on a design, build, finance and maintain (DBFM) basis. The contract is for a period of 28 years.
The total project investment is estimated at £150 million (US$230.9 million).
Construction works will start over the course of the next few weeks and the new building, which will adjoin the Royal Infirmary of Edinburgh, is anticipated to open in autumn 2017.
The project is the first acute hospital facility to be procured under the Scottish Government's Non Profit Distributing model (NPD). The NPD model is an alternative to the traditional Private Finance Initiative (PFI) model in Scotland.
"This is a momentous date for this project and I'm personally very pleased that work will soon be about to begin on the new co-located Royal Hospital for Sick Children and Department of Clinical Neurosciences. The new development brings paediatric care, specialist neonatal care, neurosciences and adult and children's emergency departments all together in one place, making access to services much easier for patients and health professionals alike."
"The Scottish Government is investing over £2 billion in Scotland's health infrastructure over the spending review period, with this development being one of many that demonstrate the Scottish Government's commitment to continually improving health services. The investment in this development will ensure the hospital campus at Little France can continue to develop as a modern hub of research and medical practice."
During the first two months of the year 2015, we have reported about several PPP projects in UK:
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