A Carillion joint venture (JV) has been selected as the preferred bidder to deliver the Midland Metropolitan Hospital Public Private Partnership project.

Sandwell and West Birmingham Hospitals NHS Trust has appointed The Hospital Company to deliver the £430m development.

The new hospital will have approximately 670 beds and 15 operating theatre suites.

Features include a fully enclosed Winter Garden, car parking within the hospital building on the ground and first floors to create a secure environment for both patients and staff.

Midland Metropolitan will be the first hospital built using the PF2 model under a 30-year concession.


Carillion expects to invest some £16m of equity in the project, which will be built by the firm at a capital cost of £297m.

Hard facilities management and life-cycle maintenance services will also be delivered by Carillion, with these services expected to generate approximately £140m of revenue over the life of the concession contract.

Financial close is expected around the end of 2015 with construction starting early in 2016.

Completion is scheduled for mid-2018, with the hospital opening in late 2018.

Carillion Chief Executive, Richard Howson, said: "We are delighted to have been selected as the preferred bidder for this important new hospital. 

"Carillion has delivered over 60 Public Private Partnership projects, including more than 20 healthcare projects, and this latest success reinforces our position as a leader in the PPP market. 

"We look forward to working with the Sandwell and West Birmingham Hospitals NHS Trust to deliver a state of the art facility that will enable the Trust to achieve its objectives for delivering significant improvements in healthcare services for the people of Sandwell and West Birmingham."

(LM)