The central Jutland municipality Region Midtjylland has selected a joint venture comprising Pensionskassernes Administration A/S (PKA), Lærernes Pension Ejendomsaktieselskab and KPC Herning A/S to develop the New Psychiatric Center PPP project in Skejby, north of Aarhus, Denmark.

The project investment is estimated at DKK1.3 billion (US$233.6 million). The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 25 years. The construction work is expected to begin at the end of this year and to be taken into service at the turn of the year 2018/2019.

KPC, as the turnkey contractor, has entered into a contract with Aarsleff subsidiary Wicotec Kirkebjerg for the technical contract at a total value of DKK282 million (US$50.7 million). The contract involves the complete technical installations and security systems in the 50,000-square metre new construction in Skejby.

In addition to the technical contract, Wicotec Kirkebjerg is to carry out facility operation and maintenance of buildings and technical installations as well as other services for the next 25 years at a total value of DKK 625 million (US$112.3 million).

The project, New Psychiatric Center in the New University Hospital in Aarhus (DNU) is Denmark's largest PPP project so far.

PKA was part of a consortium that won the tender process in March 2014 to build a new psychiatric ward closely connected to the hospital in Vejle. MT Højgaard, PensionDanmark and SamPension are also part of the consortium.

The project cost is estimated at DKK930 million (US$46 million).