This follows the that Infrastructure Ontario & Halton Healthcare Services had selected Hospital Infrastructure Partners as the preferred bidder to finance, design, build and provide facilities management and life-cycle maintenance services for the new hospital.
The project will be delivered using the Alternative Financing & Procurement (AFP) model, which is similar to the UK's Public Private Partnership (PPP) model.聽 The 30-year contract is expected to be worth some 拢1.3bn at 2011 prices and 拢1.7bn after taking into account indexation for anticipated price inflation over the contract period.聽聽
This is Carillion's sixth PPP hospital in Canada. Carillion will invest some 拢28 million of equity in the project, giving it a 40% equity share in the joint venture.聽 As a result, Carillion's share of the joint venture's revenue is expected to be approximately 拢500m over the life of the contract, at 2011 prices.聽 In addition, Carillion will also be a member of the joint venture that will carry out the construction work and provide facilities management and life-cycle maintenance services over the 30-year concession period. These are expected to generate some 拢390m of revenue for Carillion at 2011 prices.
Construction will begin this summer for completion by summer 2015.
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