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03/08/2011
Carillion Closes Deal On £1.7bn Hospital Contract
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A Carillion joint venture, Hospital Infrastructure Partners, has achieved financial close on the contract to provide the new replacement Oakville Hospital in Ontario.
This follows the announcement on 8 June 2011 that Infrastructure Ontario and 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 and Procurement (AFP) model, which is similar to the UK’s Public Private Partnership model. The 30-year contract is expected to be worth some £1.3 billion at 2011 prices and £1.7 billion after taking into account indexation for anticipated price inflation over the contract period.
This is Carillion's sixth Public Private Partnership hospital in Canada, reinforcing our position as a market leader in PPP projects in Canada, particularly in the health sector. Carillion will invest some £28 million of equity in the project, giving Carillion a 40 per cent equity share in the Joint Venture. As a result, Carillion's share of the Joint Venture's revenue is expected to be approximately £500 million over the life of the contract, at 2011 prices. 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, which together are expected to generate some £390 million of revenue for Carillion at 2011 prices.
Construction, which will begin this Summer and be completed by Summer 2015, is expected to create significant employment opportunities for the local community and also stimulate economic development in the region.
The new hospital will be a state-of-the-art facility providing a full range of health services. It has been designed to meet the Canada Green Building Council’s Leadership in Energy and Environmental Design (LEED®) rating system, with the goal of achieving LEED® Silver certification. LEED® buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources.
(CD/KMcA)
This follows the announcement on 8 June 2011 that Infrastructure Ontario and 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 and Procurement (AFP) model, which is similar to the UK’s Public Private Partnership model. The 30-year contract is expected to be worth some £1.3 billion at 2011 prices and £1.7 billion after taking into account indexation for anticipated price inflation over the contract period.
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This is Carillion's sixth Public Private Partnership hospital in Canada, reinforcing our position as a market leader in PPP projects in Canada, particularly in the health sector. Carillion will invest some £28 million of equity in the project, giving Carillion a 40 per cent equity share in the Joint Venture. As a result, Carillion's share of the Joint Venture's revenue is expected to be approximately £500 million over the life of the contract, at 2011 prices. 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, which together are expected to generate some £390 million of revenue for Carillion at 2011 prices.
Construction, which will begin this Summer and be completed by Summer 2015, is expected to create significant employment opportunities for the local community and also stimulate economic development in the region.
The new hospital will be a state-of-the-art facility providing a full range of health services. It has been designed to meet the Canada Green Building Council’s Leadership in Energy and Environmental Design (LEED®) rating system, with the goal of achieving LEED® Silver certification. LEED® buildings focus on healthy indoor environments, reduced greenhouse gas emissions and efficient use of energy, water and other resources.
(CD/KMcA)
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