However, Carillion鈥檚 own equity investment in the project has been reduced to 拢13m, from a previously expected 拢16m.
The joint venture, called The Hospital Company (Sandwell) Ltd, is 50% owned by Carillion; Richardsons Capital has 40% and Infrastructure UK 10%. It was selected as the preferred bidder for the project in Aigust 2015 by the Sandwell & West Birmingham Hospitals NHS Trust.聽 []
Construction will start in early 2016 and completion is scheduled for mid-2018, with the hospital opening in late 2018.聽 Carillion will build it, at an expected capital cost of 拢297m. It will then deliver hard facilities management and life cycle maintenance that is expected to generate approximately 拢140m of revenue over the 30-year life of the concession contract.聽聽聽
Carillion chief executive Richard Howson said: "We are delighted to have achieved financial close on this important new hospital.聽 Carillion has delivered over 60 Public Private Partnership projects including more than 20 healthcare projects, making us a global leader in the PPP market.聽 We will use this experience and our commitment to working closely with the Sandwell & West Birmingham Hospitals NHS Trust to deliver a state-of-the-art hospital that will support the Trust in delivering significant improvements in healthcare services for the people of Sandwell and West Birmingham."
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