A Carillion joint venture has achieved financial close on the Southmead Hospital PPP project, having put in place the finances necessary to deliver the new 800-bed acute hospital.

Carillion will invest £50 million of equity and will use its wide range of in-house capabilities to provide a fully integrated solution, beginning with construction services worth a total of £430 million, followed by facilities management and life-cycle maintenance services worth approximately £170 million over a 30-year contract period.

Carillion chief executive John McDonough said: "Achieving financial close only some two months after being appointed as the preferred bidder for this project reflects the close working relationship that we have established with the North Bristol NHS Trust, as well as the Group’s ability to provide a fully integrated solution for a state-of-the-art hospital, designed to the highest standards of sustainability.

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"Carillion has financially closed over 50 PPP projects in the UK and Canada, including 19 hospitals and other healthcare facilities, and the new Southmead Hospital project will be our largest PPP hospital to date. We look forward to working with the North Bristol NHS Trust to provide a hospital that will enable the Trust to deliver first-class healthcare services to the region."

The new hospital, which includes an integrated 28-bed community hospital, will concentrate acute services currently provided at Southmead and Frenchay hospitals on to a single site at Southmead in North Bristol. Advanced construction work started in August last year, with the hospital due to open in early 2014. Carillion will also provide a fully landscaped site after removing the existing outdated buildings.

(CD/GK)