13th Apr 2006 07:00
Balfour Beatty PLC13 April 2006 13 April 2006 BIRMINGHAM PFI HOSPITAL GETS THE GO AHEAD ========================================= Financial close anticipated shortly for £559 million University Hospital, Birmingham ------------------------------- It was announced yesterday that the £559 million University of Birmingham PFIHospital scheme had been given the green light to proceed after a Treasuryreview. The hospital will be financed, built and operated under a 35-yearconcession by Balfour Beatty's PFI healthcare vehicle, Consort Healthcare. Thepartners for the scheme are Royal Bank of Scotland and HSBC. The construction work will be carried out by a joint venture between BalfourBeatty Construction Ltd and Haden Young, the building services arm of theBalfour Beatty Group. Facilities management will be provided by Haden BuildingManagement Ltd, another Balfour Beatty subsidiary, under an arrangement thatcould yield over £300 million of long-term service revenue. Financial close is anticipated in the next few weeks. Consort Healthcare is already the PPP concession company for three majorhospitals, two of which are fully operational. These are the North DurhamHospital, which was opened in 2001, and the Edinburgh Royal Infirmary, whichbecame fully operational in early 2003. Construction work for the new BlackburnHospital is well advanced. Balfour Beatty is also a partner in Health ManagementGroup, the concession company responsible for the new University College LondonHospital, the first phase of which opened in 2005. It was also in the jointventure responsible for its construction. Consort Healthcare is also preferredbidder for the Pinderfields and Pontefract Hospitals in Yorkshire and theNorthern Batched Hospitals scheme in Manchester, which have a combined capitalvalue of £440 million. These schemes represent a committed equity investment of £112 million, £50million of which is in the projects at preferred bidder stage. Consort is alsobidding Fife Hospital at a capital value of £100 million. Consort Healthcare is a leader in the PPP hospitals market in which it has aproven track record and high levels of client satisfaction. ENDS Enquiries to: Tim SharpTel: 020 7216 6884 www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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