Carillion Plc Regulatory News (CLLN)

11 August 2015

Carillion is preferred bidder for Midland Metropolitan Hospital Public Private Partnership project - over £430 million of construction and support services revenue plus an equity investment of £16 million

A Carillion Joint Venture, The Hospital Company, has been selected as the preferred bidder by the Sandwell and West Birmingham Hospitals NHS Trust to deliver the new Midland Metropolitan Hospital as a Public Private Partnership under a 30-year concession contract using the UK Government's PF2 model.

The new state-of the-art hospital, which will have around 670 beds and 15 operating theatre suites, has been designed to meet the best international and national standards to make it truly patient focussed and to support the efficient delivery of high-quality clinical services. The new hospital will also have a number of innovative design features including 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 and full separation of clinical activities and journeys from the public and non-clinical services. In addition, the design and construction of the hospital will meet the highest standards of sustainability.

Carillion expects to invest some £16 million of equity in the project, which will be built by Carillion at a capital cost of £297 million. Hard facilities management and life-cycle maintenance services will also be delivered by Carillion and these services are expected to generate approximately £140 million 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.

As the leading provider of apprenticeships and training in its sector, Carillion will use this project as a further opportunity to provide training and apprenticeship opportunities as well maximising the use of local suppliers.

Commenting, 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".

Notes to Editors

Carillion is a leading integrated support services company with a substantial portfolio of Public Private Partnership projects and extensive construction capabilities. The Group had annual revenue in 2014 of some £4.1 billion, employs around 42,000 people and operates across the UK, in the Middle East and Canada. 

The Group has four business segments:

Support services - this includes facilities management, facilities services, energy services, utility services, road maintenance, rail services and consultancy businesses in the UK, Canada and the Middle East.

Public Private Partnership (PPP) projects - this includes investing activities in PPP projects for Government buildings and infrastructure, mainly in the Defence, Health, Education, Transport and Secure accommodation sectors.

Middle East construction services - this includes building and civil engineering activities in the Middle East.

Construction services (excluding the Middle East) - this includes building, civil engineering and developments activities in the UK and construction activities in Canada.

This and other Carillion news releases can be found at www.carillionplc.com

For more information

John Denning, Director Group Corporate Affairs, Carillion plc +44 (0) 1902 906333

Finsbury

James Murgatroyd or Gordon Simpson +44 (0) 207 2513801