Amec and joint venture partner Innisfree will build and manage a 750-bed hospital in Colchester, Essex.

Amec has announced that its joint venture with Innisfree has been named as the preferred bidder for a 750-bed hospital in Colchester. It beat the Pyramid consortium comprising Interserve and Equion to win the deal.

The joint venture is worth £220m to AMEC, which will be awarded contracts for design, building, construction, refurbishment and long-term estate management over the 30-year concession period.

Work will commence after Essex Rivers Healthcare NHS Trust and the AMEC joint venture reach financial close in Autumn this year.

Sir Peter Mason, chief executive of AMEC, said: “We are delighted to have been chosen for this major new hospital scheme in Colchester. It underlines our successful track record in the provision of healthcare facilities, particularly through PFI projects, where we utilise Amec's core skills to design, deliver, operate and maintain highly complex facilities.”

The new hospital will occupy the current site of Colchester General Hospital. New facilities include an oncology unit, an accident and emergency centre, an outpatients unit and staff and visitor restaurants.

The hospital will be completed in phases with final completion due in late 2009.